TikTok has signed a deal to spin-off its U.S. operations to a group controlled by mostly American investors, including software giant Oracle, a company run by billionaire Trump ally Larry Ellison.
TikTok's hyper-engaging algorithm and the massive amount of data the app has collected on millions of Americans is set to be overseen by the new U.S. firm. According to the agreement, TikTok's U.S. algorithm will be retrained with only Americans' data. Content moderation rules around what is permitted and what is not will be set by the new investor-controlled entity.
Yet the underlying algorithm will still be owned by Beijing-based ByteDance, with the blessing of American auditors, according to an internal TikTok memo reviewed by NPR and two sources familiar with the deal who were not authorized to speak publicly.
"With an American majority running the content moderation, concerns about foreign propaganda seem to have been alleviated," said Anupam Chander, a professor of law and technology at Georgetown University who studies the regulation of new technology. "But it is possible that the American TikTok might end up censoring or hiding speech that is permissible on the global TikTok platform. I would hope that the U.S. content moderation team would allow speech that the American owners might dislike."