As ByteDance races to avoid a U.S. TikTok ban, Oracle emerges as a frontrunner in talks to safeguard U.S. user data. President Trump’s 75-day delay ends April 5, and national security concerns remain a top priority.
As the U.S. government intensifies pressure on ByteDance to divest TikTok, signs are emerging that Oracle may play a central role in a potential resolution. The Chinese tech company now has roughly two weeks to finalize a solution before facing a renewed U.S. ban on the widely used short-video platform.
TikTok’s parent, ByteDance, is under legal obligation to sell its U.S. operations. However, President Trump temporarily paused enforcement on his first day back in office, granting a 75-day delay to allow for negotiations. That window closes on April 5, and unless a deal is reached, the platform faces a ban under legislation previously passed by Congress.
According to Vice President JD Vance, progress on a national security agreement appears “almost certain” ahead of the deadline. While Trump confirmed interest from four bidding parties, he stopped short of naming them. In the past, names floated include Microsoft, AI firm Perplexity, a group of U.S. investors, and even a government-controlled entity.
Yet one name keeps resurfacing — Oracle. The U.S. cloud computing firm, co-founded by billionaire Larry Ellison, has a long-standing relationship with TikTok and had attempted a full acquisition back in 2020. Since 2022, TikTok has routed all U.S. user traffic through Oracle’s infrastructure under an arrangement known as “Project Texas,” intended to address U.S. data privacy concerns.
Recent reports from The Information suggest Oracle may once again be at the forefront, possibly working out a deal in which it ensures the protection of American user data while ByteDance retains operational control of the app.
Meanwhile, Bloomberg revealed another version of the plan under review: Oracle could gain a stake in TikTok while becoming its data custodian, but ByteDance would maintain control over the platform’s proprietary algorithm—a sticking point in past negotiations.
TikTok and its CEO Shou Zi Chew have consistently opposed giving up control of the algorithm, calling it the heart of the platform’s user experience. Neither TikTok nor Oracle has publicly commented on the latest developments.
On Friday, Reuters added yet another layer: a group of non-Chinese investors in ByteDance could potentially increase their holdings and form a new U.S.-based entity to operate TikTok domestically, while Oracle provides data security to ensure compliance with U.S. law and limit access from China.