Oracle is reportedly in the lead to save TikTok from a potential US ban, with a proposed deal that would have the tech giant serve as TikTok's security partner, similar to Project Texas. According to Bloomberg, the agreement would involve Oracle "vouching" for TikTok's security in exchange for a small stake in the company's US operations.

The plan, which was discussed among the Trump administration last week, aims to address US security concerns by ensuring that an updated US version of TikTok would not contain a back door that China's government could exploit. However, the deal may still leave the app's algorithm with TikTok's China-based parent company, ByteDance, which has raised concerns among US authorities.

A source told Bloomberg that China is aware of the potential deal and will only approve it if "TikTok's algorithm remains fully under China's control." This raises questions about the effectiveness of the proposed partnership in addressing US security concerns. The Information similarly reported last week that Oracle could help save TikTok from a ban.

This development comes after TikTok previously attempted to assuage security concerns by routing US user data through Oracle servers as part of Project Texas, an initiative that began in 2022. However, reports emerged claiming that Chinese employees still had access to US user data, and that the effort was "largely cosmetic." The partnership didn't seem to inspire confidence in the US government, either.

In December, an appeals court acknowledged that TikTok "could not satisfactorily resolve the government's concerns," adding that the government found "mitigation efforts short of divestiture were insufficient." This highlights the challenges Oracle and TikTok face in addressing the US government's security concerns.

Neither TikTok nor Oracle immediately responded to requests for comment. However, Vice President JD Vance expressed optimism last week, stating that "there will almost certainly be a high-level agreement that I think satisfies our national security concerns" by the April 5th deadline to save TikTok. President Donald Trump approved of Oracle's bid for TikTok when he initially began targeting the app in 2020.

The proposed partnership between Oracle and TikTok has significant implications for the tech industry, particularly in the context of US-China tensions. If successful, the deal could set a precedent for other Chinese tech companies operating in the US, while also providing a lifeline for TikTok's US operations. However, the ongoing concerns about data security and Chinese government influence will likely continue to be a major hurdle in the negotiations.

As the deadline to save TikTok approaches, the tech industry will be watching closely to see if Oracle and TikTok can reach a deal that addresses US security concerns while also satisfying China's demands. The outcome will have far-reaching implications for the future of tech diplomacy between the US and China.