ByteDance Signs Deal with Investors to Manage TikTok's US Business
ByteDance has signed a deal with investors including Oracle, MGX (Abu Dhabi fund), and Silver Lake to operate TikTok's US business. As part of this arrangement, Oracle will license TikTok's algorithm and retrain it on US user data.
This move aims to avoid a potential US ban on TikTok and make the platform feel safer and more stable for American users. However, the US data siloing may cause TikTok's personalization to lag behind and respond more slowly to viral content, which could reduce the app's cultural relevance.
Core features such as short videos and shopping are expected to remain intact and will not depend heavily on the algorithm. Nevertheless, the US version of TikTok may experience slower access to new features and security updates compared to the international version.
