It seems that the rivalry between the Trump administration and TikTok has taken a new turn. The Chinese social media app, TikTok has now announced a new deal with Oracle and Walmart that will help keep its foot on the US soil. Last Saturday, Vanessa Pappas, TikTok’s interim head announced that Walmart and Oracle will participate in a pre IPO financing round and may take up to 20% in combined stocks. ByteDance, TikTok’s legal owner has claimed a valuation close to the US $ 60 billion.
Vanessa Pappas said that TikTok Global will be a new company headquartered in the US. The company will also work on creating 25000 jobs across the nation. She also said that in the new company Oracle and Walmart will pump a total sum of US $ 12 billion.
This move came hours before new app downloads for TikTok and WeChat were about to be banned. Bloomberg reported that the Trump administration has given an initial nod to the deal and the US Commerce Department delayed the download ban by a week.
Last Saturday, Trump told the reporters at the White House “I approved the deal in concept. If they get it done, that’s great. If they don’t, that’s OK too,”
Pappas also said that Oracle will provide the cloud infrastructure to store all of TikTok’s data in the US and Oracle will get access to TikTok’s source code and software updates so that it can look for any signs of backdoor or spying activity.
ByteDance has added one big twist before the deal made any progression, that is, it said, it won’t transfer the artificial intelligence algorithms and technologies used in TikTok as part of the deal.
According to CNBC, the company stated “The current plan does not involve the transfer of any algorithms and technologies. Oracle has the authority to check the source code of TikTok USA.”