“TikTok’s recommendation algorithm will be retrained and tested using American user data.”

ByteDance keeps 19.9% and licenses the algorithm—the actual product—to the new entity for “retraining.” 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, and politicians claim victory. The national security concerns that justified the ban apparently dissolve when the right people get equity.