Oracle is reportedly the top contender to help manage TikTok in the US. TikTok has until April to finalize a sale to an American buyer, but questions about the app’s future are still up in the air.
A new report suggests that Oracle is emerging as the leading choice for cloud technology services for TikTok’s US operations, according to The Information.
Sources close to TikTok’s parent company, ByteDance, including investors, bankers, and former executives, have indicated that ByteDance prefers Oracle over other cloud providers. Since 2022, TikTok has been using Oracle’s servers to store data for U.S. users, making Oracle a strong contender for the partnership.
The report also mentions that ByteDance wants to retain control over TikTok’s operations, with Oracle serving as a key partner. Additionally, former President Trump has expressed support for Oracle’s involvement in the deal. Oracle has yet to comment on the situation.
The likely sale of TikTok has been an ongoing saga, heavily influenced by concerns over national security and data privacy. TikTok, owned by the Chinese tech giant ByteDance, has faced scrutiny in the US and other countries due to fears that the Chinese government could potentially access user data through the app. The US government, under President Donald Trump, raised alarms about the app’s data collection practices, particularly regarding American users’ data.
In 2020, President Trump issued an executive order demanding that ByteDance sell TikTok’s US operations to an American company over these concerns, or face a potential ban. This was part of a broader effort to limit Chinese influence on the US tech-based platforms. TikTok, which had become immensely popular in the US, with millions of daily users, was caught in the crossfire between political and security concerns.
At this time, talks between ByteDance and US companies like Oracle, Microsoft, and Walmart centered on a potential sale of TikTok’s US business. Oracle was seen as a front-runner due to its cloud computing infrastructure and its support of President Trump’s administration. Neverthless, despite ongoing negotiations, no deal was finalized, and the legal and political hurdles continued.
That said, the situation was complicated by legal challenges. ByteDance and TikTok filed lawsuits in response to the Trump administration’s executive orders, arguing that the forced sale was unfair and based on insufficient evidence of security threats. In 2021, President Biden’s administration took over the review process but put a hold on the proposed TikTok ban and sale to reassess the situation.
As of 2025, TikTok is still operating in the US., but the uncertainty regarding its future remains. ByteDance faces ongoing pressure to sell or restructure TikTok’s US business in a way that addresses national security concerns. The company is exploring options that might allow it to continue operating while complying with the US regulatory demands.
Oracle’s potential involvement, as mentioned in recent reports, could be part of a broader agreement where Oracle would manage TikTok’s US cloud operations. This would address concerns over data storage and security while allowing ByteDance to maintain some level of control over TikTok’s operations in the states. The deadline for a resolution remains set for April, with the outcome still uncertain.
