.webp)
Oracle may vouch for TikTok's security in exchange for partial ownership in US operations.
According to Bloomberg, Oracle is nearing an agreement that would allow it to "vouch" for TikTok's security in return for a minor ownership position in the business's US operations. The plan would include "guarantees that an updated US version of TikTok would not contain a back door that China's government could exploit," according to reports that the Trump administration considered it last week.
According to Bloomberg, the agreement might still keep ByteDance, which is the parent firm of TikTok that is based in China, in control of the app's algorithm. Similarly, last week, the information disclosed that Oracle could be able to stop TikTok from being blocked. It's unclear if this proposal would have an impact because TikTok has previously attempted to calm security worries by transmitting US customer data through Oracle servers as part of a project called Project Texas, which began in 2022.
Project Texas revealed that the initiative was "largely cosmetic" and that Chinese staff had access to US user data. Also, there was no indication that the link increased confidence in the US government.
This was acknowledged by the appeals court in its December ruling against TikTok, which concluded that, the app "could not fully answer the government's concerns" and that the agency thought "mitigation attempts insufficient.
Oracle and TikTok did not immediately respond to The Verge's request for comment. Vice President JD Vance said last week that by the deadline of April 5th, a high-level deal to handle national security issues will probably be achieved to save TikTok. President Donald Trump accepted Oracle's original offer to acquire TikTok in 2020.
.webp)
.webp)
