Discussions surrounding TikTok’s future in the U.S. continue as a new proposal is being examined to address national security concerns while keeping the platform operational. The proposal suggests Oracle acquiring a minor stake in TikTok and collaborating with U.S. buyers to prevent Chinese government access to user data. This deal requires approval from multiple parties, including the White House, ByteDance, and the Chinese government. Uncertainty remains regarding whether this proposal significantly differs from the existing Project Texas initiative, which already involves Oracle in securing TikTok’s U.S. user data. Several investors have also expressed interest in acquiring TikTok’s U.S. operations as the deadline for a resolution nears.
Previous reports have highlighted tensions between U.S. authorities and TikTok’s Chinese ownership, with concerns about the platform’s potential influence and data security risks. Earlier negotiations involved companies such as Microsoft (NASDAQ:MSFT) and Walmart attempting to broker deals, though they failed to materialize. While Project Texas aimed to address national security risks, it did not fully resolve the apprehensions of U.S. lawmakers. Now, with the April 5 deadline approaching, discussions have intensified, and new potential buyers have emerged, reviving debates about TikTok’s future in the country.
What Does the Proposal Include?
The proposed agreement would allow TikTok to continue operating in the U.S. under stricter security measures. Oracle’s role would involve ensuring that U.S. user data remains inaccessible to external entities while the company takes a small equity stake in the app. However, the platform’s core algorithm would remain under the control of its parent company ByteDance, leaving questions about content moderation and influence unresolved.
Although this measure is aimed at easing concerns over data security, it does not address worries about potential propaganda or content manipulation. Lawmakers have previously raised the issue of foreign influence through TikTok’s recommendation system, suggesting that changes to data access alone may not be sufficient to meet security demands.
Who Else Is Interested in Buying TikTok?
Several groups have expressed interest in acquiring TikTok’s U.S. operations. Among these, a consortium led by billionaire Frank McCourt and Reddit co-founder Alexis Ohanian has emerged as a contender. Additionally, a team including tech entrepreneur Jesse Tinsley and YouTube personality MrBeast is also bidding. Another proposed deal involves Perplexity AI, suggesting that multiple parties see potential in TikTok’s continued operation within the U.S. market.
While these groups have shown willingness to invest, there is still uncertainty about whether the Chinese government would approve such a sale. Given ByteDance’s ownership and Beijing’s restrictions on foreign divestment of key technologies, any deal must navigate complex regulatory approval processes.
Vice President JD Vance commented on the ongoing discussions, stating,
“I expect a deal to be made that will keep the app operating in the U.S. while also protecting national security.”
His remarks reflect the government’s attempts to find a solution that balances economic interests with security concerns.
The debate over TikTok’s presence in the U.S. highlights broader concerns about data privacy, foreign influence, and regulatory oversight. While the proposed partnership with Oracle may offer a temporary resolution, it does not fully eliminate concerns about content control and long-term security. If the deal proceeds, its effectiveness in addressing national security risks will likely face ongoing scrutiny. Additionally, potential buyers must navigate complex regulatory approvals from both U.S. and Chinese authorities. With the deadline approaching, the final decision will shape not only TikTok’s future but also broader policies on foreign-owned digital platforms operating in the U.S.
