“TikTok’s recommendation algorithm will be retrained and tested using American user data.”
ByteDance keeps 19.9% and licenses the algorithm to the new entity for “retraining.” The algorithm is the actual product. Oracle, which failed to build a competitive cloud business, now stores the data. The majority-American board provides cover while the same app runs the same code. This is a face-saving deal for everyone. ByteDance keeps its cash cow. Investors get a cut. Politicians claim victory. The national security concerns that justified the ban apparently dissolve when the right people get equity.