The spotlight shines again on TikTok’s algorithm as ByteDance, the platform’s Chinese owner, solidifies plans for a joint venture with American investors, including Oracle. This move aims to mitigate U.S.-China tech tensions, but ownership of TikTok’s algorithm, pivotal to its success, remains ambiguous.
The arrangement seeks to balance control, as ByteDance retains comprehensive business operations and revenue control, while the joint venture manages U.S. user data and algorithm functionalities. However, the lack of clarity on the algorithm’s ownership––whether it’s been transferred, licensed, or monitored by Oracle––sparks speculation.
Crucially, TikTok’s algorithm, celebrated for its responsiveness to user interests over social graphs, shapes its distinctive user experience. Its innovative use of short videos anticipates user preferences, giving it a competitive edge over other platforms introducing similar features later. Research underscores its potent ability to maintain user engagement by exploring beyond known interests.
(With inputs from agencies.)
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