Oracle will take charge of TikTok’s US recommendation engine under a White House-brokered deal designed to cut Chinese parent company ByteDance out of the app’s American operations.

The agreement, confirmed by a senior US official, will see TikTok’s algorithm leased from ByteDance then rebuilt “from the ground up” using US user data and Oracle’s oversight.

The move is intended to ensure the recommendation system cannot be manipulated by foreign interests.

All US user data, covering TikTok’s 170 million American subscribers, will be stored on Oracle servers. The Texas-based company will also work with the US government on source code reviews, algorithm retraining and app development.

It follows news that Rupert and Lachlan Murdoch (pictured below), along with Dell Technologies founder Michael Dell, are set to become key investors in TikTok.

As part of the new Oracle deal, ByteDance’s stake in the new US entity will fall below 20% to comply with legislation requiring it to give up control.

Six of seven board seats will be held by Americans, though ByteDance will retain a single director role, excluded from security oversight.

The deal comes after years of discussions in the US over national security risks, with lawmakers warning that China could exploit TikTok to gather data or influence opinion.

Trump has repeatedly pushed for a forced sale, threatening a nationwide ban unless ByteDance divested its US arm.

Oracle is among a consortium of US investors, expected to include Silver Lake, Andreessen Horowitz and Fox Corp.

The White House says President Xi Jinping (pictured) has signalled support for the framework, though Chinese regulators must still give formal approval.

Trump is set to sign an executive order this week, extending the divestiture deadline by 120 days to allow the transaction to close.

The arrangement marks a major expansion of Oracle’s existing role in “Project Texas,” a partnership to store TikTok data in the US. However, critics warn technical challenges remain in fully separating the platform from ByteDance’s technology, while analysts suggest changes to TikTok’s algorithm risk alienating creators and users.

If finalised, the deal would represent the largest restructuring of a global social media platform to date.