Oracle said Monday that the Chinese owner of TikTok has picked the United States company to be its “trusted technology provider,” beating out rival Microsoft in a deal that could help keep the popular video-sharing app running in the US.
Oracle spokeswoman Deborah Hellinger said she was confirming remarks made by US Treasury Secretary Steven Mnuchin, who told CNBC on Monday that TikTok’s parent company, ByteDance, submitted its proposal to the US government for approval.
“We did get a proposal over the weekend that includes Oracle as the trusted technology partner with Oracle making many representations for national security issues,” Mnuchin said.
Mnuchin said there’s also a commitment to make TikTok’s global operations a US-headquartered company with 20,000 new jobs.
President Donald Trump’s administration has threatened to ban TikTok by September 20 and ordered owner ByteDance to sell its US business, claiming national security risks due to its Chinese ownership. The government worries about user data being funnelled to Chinese authorities. TikTok denies it is a national security risk and is suing to stop the administration from enacting the threatened ban.
Much remains unclear about the proposed deal with Oracle, which is pointedly not referring to it as a sale or acquisition.