White House Actively Evaluating Oracle's Proposal to Operate TikTok
Any agreement might encounter security apprehensions from China hawks within Congress.
TroibNews 
Oracle is intensifying discussions with the White House regarding a potential deal to oversee TikTok, amidst ongoing concerns about the involvement of the app’s Chinese founders in its U.S. operations, as reported by three individuals with knowledge of the talks.
Negotiations are being led by Vice President JD Vance and national security adviser Mike Waltz, who have been tasked by President Donald Trump to facilitate the transition of TikTok to U.S. ownership. Senators have expressed interest in being updated on these discussions, according to two of the sources. A third individual noted that the White House talks are in advanced stages.
These sources spoke on the condition of anonymity due to the confidential nature of the negotiations. Congressional Republicans and advocates for a tougher stance on China have been vocal about their concerns, warning that any ownership arrangement that leaves TikTok’s core technology under Chinese control could merely provide an ineffective solution to the security issues that prompted last year’s bipartisan ban.
Lawmakers, including some Republicans, will meet with Oracle this week to discuss the potential deal and escalating national security issues, as stated by four individuals familiar with the upcoming meetings.
One insider involved in the discussions remarked that the deal would essentially make the U.S. government reliant on Oracle to manage American user data and prevent any unauthorized access by the Chinese government, a commitment they indicated might be unachievable.
“If the Oracle deal moves forward, you still have this [algorithm] controlled by the Chinese. That means all you are doing is saying ‘trust Oracle’ to disseminate the data and guarantee there is no ‘back door’ to the data,” the person told PMG.
If the algorithm isn’t completely rebuilt by a U.S. owner or if ByteDance retains any influence over TikTok’s operations, it could still present vulnerabilities that the Chinese government might exploit.
A data security firm, HaystackID, which acts as independent security inspectors for TikTok U.S., reported in February that it found no evidence of malicious activity, either internally or externally, and has not identified any protected U.S. user data being shared with China.
Spokespeople for Oracle, TikTok, ByteDance, and the White House did not immediately provide comments.
This deal is being referred to as “Project Texas 2.0,” referencing a previous agreement between TikTok and Oracle to migrate American user data to servers located in Texas and prevent ByteDance employees in China from accessing it. However, that prior agreement, which also required Oracle to review TikTok’s source code for security, did not alleviate congressional and Biden administration concerns that China could be utilizing the app for espionage and propaganda.
According to The Information, Oracle is considered a “leading contender” to take over TikTok, with ByteDance favoring it for this role. The extent of the White House’s engagement and the seriousness of officials’ consideration of this proposal have not been reported previously.
The urgency of the negotiations is heightened by Trump’s April 5 deadline to secure a new owner for the Chinese video-sharing platform, following his January executive order that postponed enforcement of Congress’ ban for 75 days. In January, TikTok’s parent company, ByteDance, briefly went offline for about 12 hours after it missed the deadline to divest its stake, and the Supreme Court upheld Congress’ ban.
Vance expressed optimism during a Friday interview with NBC News that a TikTok deal could be finalized before the early April deadline. Last week, Trump revealed that his administration was in discussions with “four different groups” regarding a deal.
Trump also mentioned in January his openness to the idea of Oracle founder Larry Ellison acquiring TikTok. Ellison is known to be a longtime supporter of Trump and is involved in Project Stargate, a $500 billion AI infrastructure initiative that includes companies like OpenAI, SoftBank, and MGX.
Despite seeking to ban TikTok over national security issues during his first term, Trump has recently embraced the app, particularly while campaigning. At a rally in December, he shared his fondness for TikTok, citing the support he received from younger voters in the upcoming 2024 election, a shift that followed discussions with Republican donor Jeff Yass, who owns a significant share of ByteDance.
It remains uncertain whether the eventual agreement will meet the expectations of China hawks in Congress, who may have limited recourse to voice their objections. Trump’s executive order extending the initial deadline — amidst concerns from GOP lawmakers and legal experts about its legitimacy — demonstrated his willingness to override congressional interests. The final decision on whether ByteDance sells TikTok or licenses it to a U.S. company ultimately resides with the Chinese government.
Beijing seeks to safeguard TikTok’s exclusive access to user data and is resistant to any notion that Chinese firms should comply with the demands of foreign authorities. Over the past year, officials in Beijing and the Chinese embassy in Washington have largely evaded inquiries regarding the status of potential negotiations for a TikTok sale to a foreign company.
Limited comments from Beijing have not provided much encouragement regarding their support for such an arrangement. The Chinese government “will firmly oppose” any forced sale of the company and has stated that ByteDance must “seek governmental approval in accordance with Chinese regulations” for any foreign ownership deal, as per comments from Chinese Commerce Ministry spokesperson Shu Jueting in March. That same month, Chinese Foreign Ministry spokesperson Wang Wenbin accused Congress of engaging in “hegemonic moves” to control the app. In January, the Chinese government adopted more diplomatic language surrounding a possible TikTok sale, but did not clarify its stance on approving such a deal.
Transactions of this nature “should be independently decided by companies in accordance with market principles,” emphasized Chinese Foreign Ministry spokesperson Mao Ning in January.
Aarav Patel contributed to this article for TROIB News
Negotiations are being led by Vice President JD Vance and national security adviser Mike Waltz, who have been tasked by President Donald Trump to facilitate the transition of TikTok to U.S. ownership. Senators have expressed interest in being updated on these discussions, according to two of the sources. A third individual noted that the White House talks are in advanced stages.
These sources spoke on the condition of anonymity due to the confidential nature of the negotiations. Congressional Republicans and advocates for a tougher stance on China have been vocal about their concerns, warning that any ownership arrangement that leaves TikTok’s core technology under Chinese control could merely provide an ineffective solution to the security issues that prompted last year’s bipartisan ban.
Lawmakers, including some Republicans, will meet with Oracle this week to discuss the potential deal and escalating national security issues, as stated by four individuals familiar with the upcoming meetings.
One insider involved in the discussions remarked that the deal would essentially make the U.S. government reliant on Oracle to manage American user data and prevent any unauthorized access by the Chinese government, a commitment they indicated might be unachievable.
“If the Oracle deal moves forward, you still have this [algorithm] controlled by the Chinese. That means all you are doing is saying ‘trust Oracle’ to disseminate the data and guarantee there is no ‘back door’ to the data,” the person told PMG.
If the algorithm isn’t completely rebuilt by a U.S. owner or if ByteDance retains any influence over TikTok’s operations, it could still present vulnerabilities that the Chinese government might exploit.
A data security firm, HaystackID, which acts as independent security inspectors for TikTok U.S., reported in February that it found no evidence of malicious activity, either internally or externally, and has not identified any protected U.S. user data being shared with China.
Spokespeople for Oracle, TikTok, ByteDance, and the White House did not immediately provide comments.
This deal is being referred to as “Project Texas 2.0,” referencing a previous agreement between TikTok and Oracle to migrate American user data to servers located in Texas and prevent ByteDance employees in China from accessing it. However, that prior agreement, which also required Oracle to review TikTok’s source code for security, did not alleviate congressional and Biden administration concerns that China could be utilizing the app for espionage and propaganda.
According to The Information, Oracle is considered a “leading contender” to take over TikTok, with ByteDance favoring it for this role. The extent of the White House’s engagement and the seriousness of officials’ consideration of this proposal have not been reported previously.
The urgency of the negotiations is heightened by Trump’s April 5 deadline to secure a new owner for the Chinese video-sharing platform, following his January executive order that postponed enforcement of Congress’ ban for 75 days. In January, TikTok’s parent company, ByteDance, briefly went offline for about 12 hours after it missed the deadline to divest its stake, and the Supreme Court upheld Congress’ ban.
Vance expressed optimism during a Friday interview with NBC News that a TikTok deal could be finalized before the early April deadline. Last week, Trump revealed that his administration was in discussions with “four different groups” regarding a deal.
Trump also mentioned in January his openness to the idea of Oracle founder Larry Ellison acquiring TikTok. Ellison is known to be a longtime supporter of Trump and is involved in Project Stargate, a $500 billion AI infrastructure initiative that includes companies like OpenAI, SoftBank, and MGX.
Despite seeking to ban TikTok over national security issues during his first term, Trump has recently embraced the app, particularly while campaigning. At a rally in December, he shared his fondness for TikTok, citing the support he received from younger voters in the upcoming 2024 election, a shift that followed discussions with Republican donor Jeff Yass, who owns a significant share of ByteDance.
It remains uncertain whether the eventual agreement will meet the expectations of China hawks in Congress, who may have limited recourse to voice their objections. Trump’s executive order extending the initial deadline — amidst concerns from GOP lawmakers and legal experts about its legitimacy — demonstrated his willingness to override congressional interests. The final decision on whether ByteDance sells TikTok or licenses it to a U.S. company ultimately resides with the Chinese government.
Beijing seeks to safeguard TikTok’s exclusive access to user data and is resistant to any notion that Chinese firms should comply with the demands of foreign authorities. Over the past year, officials in Beijing and the Chinese embassy in Washington have largely evaded inquiries regarding the status of potential negotiations for a TikTok sale to a foreign company.
Limited comments from Beijing have not provided much encouragement regarding their support for such an arrangement. The Chinese government “will firmly oppose” any forced sale of the company and has stated that ByteDance must “seek governmental approval in accordance with Chinese regulations” for any foreign ownership deal, as per comments from Chinese Commerce Ministry spokesperson Shu Jueting in March. That same month, Chinese Foreign Ministry spokesperson Wang Wenbin accused Congress of engaging in “hegemonic moves” to control the app. In January, the Chinese government adopted more diplomatic language surrounding a possible TikTok sale, but did not clarify its stance on approving such a deal.
Transactions of this nature “should be independently decided by companies in accordance with market principles,” emphasized Chinese Foreign Ministry spokesperson Mao Ning in January.
Aarav Patel contributed to this article for TROIB News
