TikTok US is here: can Oracle run a social platform?

The uncertain future of US TikTok has been pending for so long that updates have started to feel like ‘crying wolf’. But now, at last, a deal has been reached.

Changes to the platform should be minor (although technical issues reported by CMU have raised alarm bells), but there could be a bigger underlying shift on the cards.

TikTok’s secret sauce: it’s all about the algorithm

An important factor of the deal was TikTok’s algorithm; parent company ByteDance initially resisted the idea of selling its proprietary algorithm along with the platform. However, the new conditions of the deal see it willing to license the algorithm, which will sit on Oracle’s servers.

Most of the changes will largely be on the business side: a new company will be created (TikTok USDS Joint Venture LL) and will operate as an independent entity governed by a majority-American board of directors. Major investors include Oracle, Silver Lake (which also has a big stake in EA as of last year), and MGX, an Emirati investor in AI and technology. ByteDance will retain a 19.9% stake and TikTok’s global head, Shou Zi Chew, will sit on the board of the new company. Oracle will be responsible for securing the data of TikTok's American users, and overseeing retraining of the (US) app's recommendation algorithm on US-only data and in line with US regulatory guidelines, per the BBC.

Social competition is fierce – can Oracle keep up?

When TikTok first entered the US market, parent company ByteDance had plenty of experience in successful social media apps. It originally launched Toutiao in 2012, then added Xigua Video, Lark, Helo, and Douyin – which, of course, was rebranded as TikTok for the global market with the addition of Musical.ly.

By the time TikTok took off globally in 2018, its methods were well vetted – Oracle has no such experience. If it decides to make sweeping changes, it may do significant damage to the app’s experience in the US, and therefore its popularity. Moreover, retraining on only US data indicates less data to train from, and therefore, less precise recommendations.

The fact is, users have other options, and they aren’t brand loyal. As of Q3 2025, roughly 70% of 16-19-year-olds use Instagram, YouTube, and TikTok (each – not all three combined). This means built-in overlap of direct competitors, with users citing “type of content” and “network” (e.g., other people they know on the app) as their main reasons for using more than one, per MIDiA’s consumer survey. Should US TikTok’s re-trained algorithm lose its competitive edge, it will inevitably cede user time and cultural relevance. While the app will not be geo-fenced and will still have international content available, it is possible that the “For You” page will skew more American for American users due to technical constraints, according to the BBC. This would promote cultural isolation at a time when other regions are beginning to thrive on the international stage, like Latin America through its music.

Diversification is the safest path for creators

Oracle could stay light-touch, given that TikTok already largely meets regulatory guidelines as is. If broader regulation changes, or content regulation shifts to a “one-off” approach with standalone interventions rather than a total algorithmic overhaul, it could lead to further unpredictability on the app.

However, this alone may not dissuade users. MIDiA data finds TikTok audiences over-index for favouring social media videos about fashion, TV shows, and comedy, while under-indexing for news, so are less likely to be affected by political or news-based restrictions.

Censorship or not, the real test is whether the app will still be entertaining – or whether changes negatively affecting the algorithm’s performance will cause them to turn to other apps. In the meantime, creators trying to reach global audiences should focus on diversifying their approaches. Breaking through to other markets may become harder on TikTok, regardless of whether users shift more of their time to other apps – and they are already spending time on those other apps. When disruption threatens, it’s best not to have all your eggs in just one basket.