
It’s been a big couple of weeks for Oracle. Today, Bloomberg reported that Oracle may provide the security measures for a new version of TikTok’s algorithm.
Earlier in September, Oracle co-founder, chairman and CTO Larry Ellison outlined his plan to become a major player in AI inference, opening up a potentially “multi-trillion-dollar” business.
US government wants to establish a secure barrier around the American version of TikTok
Oracle could be responsible for securing and retraining a new version of the TikTok algorithm. The new version may be created if the app is sold to American investors, Bloomberg reported on Sept. 22.
The proposal was created in response to concerns from the US government about China-based TikTok, an app that boasts 150 million users in the US. To divest parent company ByteDance of TikTok in the US while maintaining ByteDance’s ownership of the app elsewhere in the world, the plan calls for a duplicate algorithm for US operations.
On Friday, President Donald Trump said he had spoken to Chinese President Xi Jinping and that both had supported the proposal to spin off an American version of the TikTok algorithm.
The Chinese foreign ministry did not indicate a deal had been finalized, saying on Friday: “The Chinese government respects the wishes of the company in question, and would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides,” according to Bloomberg.
On Sept. 19, ByteDance wrote, “We thank President Xi Jinping and President Donald J. Trump for their efforts to preserve TikTok in the United States. ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok US.”
Oracle could both invest in and provide infrastructure for an American version of TikTok
Oracle would be responsible for isolating the American version of TikTok from ByteDance or other “improper manipulation or surveillance,” according to a statement from a White House official obtained by Bloomberg on Monday.
Under the plan, Oracle will hold data belonging to American users in a secure cloud. This would be an expansion of the business Oracle already does with TikTok; Oracle already supplies cloud services for TikTok and hosts user data in the US as well as in other countries.
Oracle will carry out TikTok’s algorithm retraining, application development, and source code review under the new plan in cooperation with the American government, the White House official said.
The cloud provider is also part of an investor group with Andreessen Horowitz and Silver Lake. The group will control the joint venture that leases the American version of TikTok.
The plan to divest part of TikTok from ByteDance may still face pushback from lawmakers.
Tech companies hiring workers on H-1B visas may have to pay $100,000 per application as part of a US government crackdown on foreign labor.
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