New details are surfacing about the TikTok deal, revealing a carefully crafted arrangement that appears to sidestep accusations of violating U.S. legislation while safeguarding Chinese interests.
At its core, ByteDance will create a copy of its algorithm and lease it to a new joint venture controlled by Andreessen Horowitz, Silver Lake, and Oracle. Users won’t need to reinstall the app, data will be stored with Oracle, and ByteDance will retain control of TikTok globally.
Oracle will also “retrain” the algorithm using collected data, a move framed as independent management - technically complying with a U.S. law banning collaboration with ByteDance in algorithm oversight.
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This structure received a green light from the Chinese government during talks in Madrid. ByteDance will maintain one representative on the board, while the U.S. government, despite earlier discussions, will neither hold a golden share nor secure a board seat. Critics might argue this deal prioritizes corporate interests over national security, raising questions about the algorithm’s true independence and the lack of U.S. oversight. Dubbed the “Art of TACO deal,” this compromise reflects a delicate balance - or a convenient loophole - shaping the app’s future.
