After years of negotiations and political pressure, TikTok has finalized a major agreement to restructure its U.S. operations, with Oracle playing a central role in data management and infrastructure.
Under the deal, Oracle will host and secure U.S. user data, addressing longstanding concerns from lawmakers that sensitive information could be accessed by foreign entities. TikTok’s leadership said the agreement strengthens safeguards while allowing the company to continue operating its popular video platform in the United States.
The agreement follows years of scrutiny from U.S. officials, who have warned that TikTok’s ownership structure posed potential national security risks. Previous efforts to force a sale or ban the app stalled amid legal challenges and shifting political priorities in United States.
From a business perspective, the deal provides Oracle with a significant and steady source of cloud revenue, though analysts note it does little to reduce the broader risks tied to Oracle’s expanding data center footprint. For TikTok, the agreement offers regulatory stability and clarity after prolonged uncertainty.
TikTok CEO Shou Chew approved the arrangement, emphasizing that it preserves the platform’s creative ecosystem while meeting U.S. security expectations. The company said additional transparency measures and oversight mechanisms will be rolled out in the coming months.
The finalized deal marks a turning point in one of the most closely watched tech-policy disputes of the past decade, underscoring how geopolitics, data security, and global technology platforms are increasingly intertwined.
