Amid the uncertainty over whether the TikTok app will remain available in the United States, an agreement has been reached under which the app will cease to be fully dependent on its Chinese owner, ByteDance, and will instead be handed over to a group of investors led by Oracle (chaired by Larry Ellison, an ally of Donald Trump), along with Abu Dhabi’s MGX fund and the Silver Lake firm.
The main change will affect the recommendation algorithm, which will be licensed by Oracle and trained exclusively with data from the 170 million U.S. users, which according to experts like Matt Navarra and Kokil Jaidka, could make the platform safer but also more “tame” and less personalized. This move aims to ensure national security, although journalists like Will Guyatt warn that the U.S. version could become isolated from updates and the cultural relevance that global TikTok currently has.
TikTok in the United States
The future of the world’s most influential social network has taken a 180-degree turn for American users. After months of uncertainty, the Chinese company ByteDance has reached an agreement with a group of investors to allow TikTok to continue operating on U.S. soil. However, the agreed-upon deal leaves a crucial question unanswered for the more than 170 million Americans who use the app: will TikTok continue to function as we know it, or will a watered-down version be created for Americans? Under this agreement, the new owners responsible for TikTok’s operations in the country will be:
- Oracle: A giant technology company led by Larry Ellison (who is an ally of Donald Trump). They will be the ones to hold the “license” for the famous algorithm.
- MGX: An investment fund from the Abu Dhabi government.
- Silver Lake: A private investment firm.
Under this new hierarchy, Oracle will be the one to determine the information that appears on the “For You Page”, training the algorithm only with data from U.S. users, unlike the original app, which uses global data. This will provide much more biased and controlled content for Americans.
Consequences of the new operation
In his statements to the BBC, social media industry expert Matt Navarra stated, “The power of TikTok has always come from feeling a little out of control – strange, niche, uncomfortable, sometimes politically sharp content for anyone else or before it goes anywhere else. If you start to soften those edges, you’re not just changing moderation. I think you’re changing its relevance.” On the other hand, tech journalist Will Guata also told the outlet that the differences between the original TikTok app and the possible new U.S. summer version may depend on “all the new features, security updates, and platform improvements” as soon as the international version does.
Meanwhile, computing expert Kokil Jaidka from the National University of Singapore clarified that aspects such as short videos and the app’s shopping section will remain unchanged, as they do not depend on the algorithm. She also added, “If TikTok is operating with a licensed or partially diluted version of its recommendation algorithm, some of the system’s blind spots may start to matter more.” According to Navarra, she thinks the real test will not be whether users leave. It will be whether TikTok can still feel like the place the internet is going to experience—or if it becomes the place that is going to behave.
Frequently asked questions
Who are the new owners of TikTok in the U.S.?
The app will go to Oracle (led by Larry Ellison), Abu Dhabi’s MGX fund, and the firm Silver Lake, reducing control by the Chinese company ByteDance.
How will the experience change for users?
The algorithm will be trained only with U.S. data, not global data. Experts like Matt Navarra warn that this could make the app more “boring” and less personalized than the international version.
Will features like videos or shopping be lost?
No, the video tools and shopping section will remain the same. The real risk, according to journalists like Will Guyatt, is that updates and new features might arrive later than in the rest of the world.