In his memo to employees, CEO Shou Chew emphasized that the new arrangement gives the U.S. entity “clear and independent authority over sensitive operational decisions,” a point US regulators have repeatedly demanded.
Algorithm Concerns Looming with China Bytedance
Despite the progress, concerns remain—particularly around TikTok’s powerful recommendation algorithm. Under the framework outlined by the White House, China ByteDance will license its AI technology to TikTok U.S., which will then retrain a new system using American user data stored on Oracle’s cloud servers.
This approach closely mirrors Project Texas, a previous proposal rejected by U.S. regulators who concluded it did not go far enough to mitigate national security risks. Whether the revised structure will satisfy those concerns remains an open question.
TikTok Market Outlook and China’s Response
On Wall Street, analysts currently assign Oracle a Moderate Buy rating. Based on recent estimates, the average ORCL price target ranges from $308 to $312 per share, implying potential upside of more than 50%. Analyst sentiment can be tracked on platforms like https://www.tipranks.com/stocks/orcl/forecast.
