Under the current terms of the proposal, the new U.S. joint venture would receive a licensed copy of the recommendation algorithm that keeps TikTok users endlessly scrolling through clips on their smartphones. Oracle would review, monitor and secure U.S. data flowing through the service.

TikTok’s new U.S. entity would lease a copy of ByteDance’s algorithm, which Oracle would retrain (ORCL), a senior White House official tells