The Chinese owner of TikTok has picked Oracle as the U.S. 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 U.S.
“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,” U.S. Treasury Secretary Steven Mnuchin, told CNBC on Monday.
Mnuchin said there’s also a commitment to make TikTok’s global operations a U.S.-headquartered company with 20,000 new jobs.
President Donald Trump’s administration has threatened to ban TikTok by Sept. 20 and ordered owner ByteDance to sell its U.S. business, claiming national security risks due to its Chinese ownership.
Much remains unclear about the proposed deal with Oracle, which is pointedly not referring to it as a sale or acquisition.