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White House discloses more details of deal to save TikTok

White House discloses more details of deal to save TikTok

Summary

The U.S. and China have proposed a deal for TikTok where the Chinese owner, ByteDance, will lease its algorithm to a new U.S.-controlled entity. The U.S. group, led by investors like Oracle, will handle American user data and retrain the algorithm. President Trump is expected to approve this deal soon.

Key Facts

  • TikTok's algorithm will be leased from ByteDance, the Chinese owner, to a new U.S. entity.
  • The deal lets ByteDance keep operating TikTok outside the U.S.
  • Oracle, a part of the U.S. investor group, will manage American user data.
  • The Chinese government has approved these terms.
  • Some in Congress may not agree with the leasing of the algorithm.
  • The U.S. government will not have a direct stake or board seat in the new TikTok entity.
  • President Trump will pause enforcement of a TikTok ban for 120 more days to finalize the deal.
  • Investors like Andreessen Horowitz, Oracle, and Silver Lake are involved, but specifics are still being finalized.
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