REDWOOD CITY, CA (CelebrityAccess) — U.S. Technology giant Oracle revealed on Monday that it has secured a deal to provide infrastructure to ensure that popular short form social media app TikTok can continue running in the U.S.
U.S. Treasury Secretary Steven Mnuchin confirmed the deal on Monday, telling CNBC that Oracle had submitted the deal to regulators 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 also said TikTok has agreed to move its headquarters and 20,000 jobs to the U.S.
The full details about the agreement have not been announced but both Secretary Mnuchin and Oracle avoided using the word acquisition, instead suggesting that Oracle will become the ‘trusted technology partner’ for TikTok, avoiding data being offshored to China.
TikTok and its parent company ByteDance have come under scrutiny over its alleged close connection with the Chinese government.
In August, U.S. President Donald Trump threated to impose sanctions on TikTok that would prevent the app from being downloaded or updated in the U.S. and would have blocked U.S. companies from doing business with TikTok or its corporate parent.
TikTok has denied providing user information to the Chinese government and filed a lawsuit to stop the administration from enacting the sanctions.
A coalition led by Microsoft was also looking at acquiring the U.S. assets of TikTok but the company on Sunday revealed that the deal had gone off the tracks.