Oracle’s acquisition of TikTok’s U.S. operations has taken on new significance following Chairman Larry Ellison’s previous comments about AI-powered surveillance becoming ubiquitous in daily life. The deal positions Oracle, already a major AI infrastructure provider with a $300 billion OpenAI contract, to control one of America’s most popular social media platforms and its powerful algorithm.
What you should know: President Trump signed an executive order Thursday clearing the way for Oracle and other American investors to acquire TikTok’s U.S. business from Chinese parent company ByteDance.
- Oracle will lead U.S. oversight of TikTok’s algorithm and security measures, with Vice President JD Vance confirming the algorithm will be “under the control of American investors.”
- The ownership structure includes Oracle and Ellison in “big” roles, with Rupert Murdoch, a conservative media mogul, and Michael Dell, a computer billionaire, joining the board alongside three additional “blue-chip” backers.
The surveillance context: Ellison’s September 2023 comments about constant AI-powered monitoring have gained fresh relevance given Oracle’s expanding role in social media.
- “Citizens will be on their best behavior because we are constantly recording and reporting everything that’s going on,” Ellison predicted at Oracle’s financial analyst meeting.
- He described a future where AI processes footage from dashboard cameras, doorbell cameras, and police body cameras to provide continuous supervision of both citizens and law enforcement.
Oracle’s AI infrastructure boom: The company has emerged as a critical player in the AI industry beyond the TikTok deal.
- Oracle stunned Wall Street with a $300 billion, five-year cloud computing contract with OpenAI—one of the largest cloud deals ever signed.
- The company also partnered with SoftBank, a Japanese investment firm, and OpenAI on new data centers as part of the massive Stargate Project.
By the numbers: Oracle’s recent financial performance reflects its AI infrastructure success.
- The company reported $455 billion in contracts, representing a 359% increase from the previous year.
- CEO Safra Catz revealed Oracle secured deals with three different customers during the most recent quarter.
How it works: Oracle will recreate TikTok’s algorithm and provide a new U.S. version while ensuring data security for American users.
- Reports indicate Oracle will maintain operational control over the app’s core functionality and user data protection.
- The arrangement allows TikTok to continue operating in the U.S. while addressing national security concerns about Chinese oversight.
What they’re saying: Vice President JD Vance emphasized the significance of American control over the platform.
- “This deal will allow for the U.S. to control the app’s algorithm,” Vance said.
- “It’s actually going to be American-operated all the way.”
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