TikTok Preserves American Operations Through Cloud Infrastructure Partnership with Oracle

TikTok announced Thursday the successful finalization of an ownership restructuring that establishes a majority American-owned entity featuring a significant cloud infrastructure partnership with Oracle. The deal allows the platform to continue US operations while leveraging Oracle’s technology capabilities to address security concerns.
The completed transaction reduces ByteDance’s ownership to a 19.9% minority stake, while American investors collectively control 80.1% of the new US-based company. Oracle, led by billionaire technology entrepreneur Larry Ellison, holds a 15% stake and brings significant cloud computing and database infrastructure expertise to the partnership. Silver Lake and MGX each also hold 15%, with Michael Dell’s investment firm contributing additional capital.
This settlement stems from congressional legislation passed in 2024 that required TikTok to divest from Chinese ownership or face prohibition from American digital platforms. The law reflected concern about data security and potential foreign access to user information. Oracle’s participation addresses these concerns through its cloud infrastructure capabilities, which can provide secure hosting and data management for American user information.
The restructured American TikTok will be led by Adam Presser as CEO, utilizing his institutional knowledge from previous senior leadership roles with the company. Strategic oversight will be provided by a seven-person board of directors, deliberately constructed with an American majority and filled with cybersecurity and national security experts. Current TikTok CEO Shou Chew will join the board, maintaining continuity between the US entity and global operations.
The company has outlined specific protective measures for American users, including comprehensive data protection systems that leverage Oracle’s cloud infrastructure capabilities, algorithm security protocols, enhanced content moderation, and software integrity assurances. The platform’s content recommendation algorithm will undergo complete retraining based exclusively on US user data, with rigorous testing and continuous updates. Both US and Chinese government officials have approved the arrangement, with President Trump publicly expressing thanks to Chinese President Xi Jinping for his role in facilitating the deal that brings together American technology leadership and investment.