TikTok users across multiple regions in the United States experienced significant difficulties accessing the popular social media platform over the weekend, with widespread reports of videos failing to load and login problems preventing access to accounts.
Oracle Confirms Data Center Outage as Root Cause
Oracle, the cloud infrastructure provider supporting TikTok's US operations, has officially confirmed that the service disruption originated from an outage at one of its American data centers. In a statement to Reuters, Oracle representatives explained that their engineering teams worked swiftly to identify and resolve the technical issue that impacted TikTok services.
"We experienced an outage at a U.S. data center that impacted TikTok services. The issue has been resolved, and systems are back online," Oracle stated, providing clarity about the infrastructure problem that left millions of users unable to access their favorite short-form video content.
TikTok's Dependence on Oracle Infrastructure
TikTok's reliance on Oracle's cloud infrastructure forms a crucial component of its Project Texas initiative, a comprehensive program designed specifically to address national security concerns by storing American user data exclusively on domestic servers within the United States. This strategic partnership represents TikTok's ongoing efforts to distance itself from its Chinese origins and establish stronger operational foundations in America.
Growing User Exodus Amid Privacy Policy Changes
As reported by CNBC, TikTok has been experiencing a noticeable exodus of American users following the platform's transition from Chinese ownership to a majority US-owned entity. This user departure gained momentum shortly after the newly-formed TikTok USDS Joint Venture LLC prompted users to accept an updated privacy policy containing language that raised immediate concerns among privacy-conscious individuals.
The revised policy explicitly states that TikTok may collect various categories of sensitive user data, including:
- Racial or ethnic origin information
- Sexual life or sexual orientation details
- Transgender or nonbinary status
- Citizenship or immigration status
- Financial information and related data
While this language has reportedly been present in TikTok's privacy policy since at least August 2024, its prominence in the updated agreement has fueled growing narratives about potential increased surveillance under the platform's new American ownership structure.
The New American Ownership Structure
TikTok's transition to US ownership involves a consortium of prominent investors who will collectively control more than 80% of the new venture. The ownership breakdown includes:
- Software giant Oracle holding 15% of US operations
- Emirati investment firm MGX with 15% ownership
- Investment firm Silver Lake maintaining 15% stake
- ByteDance retaining just under 20% ownership
- Additional investors including Michael Dell's personal investment entity and affiliates of General Atlantic and Susquehanna
Adam Presser, TikTok's former head of operations, has been appointed as the CEO for US TikTok operations, while Shou Chew, TikTok's global CEO, will maintain a seat on the board of the American entity. The seven-member board for US TikTok will consist primarily of American representatives, according to internal communications shared with TikTok employees in December.
Addressing National Security Concerns
This comprehensive ownership restructuring represents a strategic effort to loosen TikTok's connections to China and directly address longstanding national security concerns that Beijing could potentially use the platform to surveil or manipulate its extensive user base of more than 200 million Americans.
TikTok CEO Shou Chew characterized these changes as "great news" in an internal memo, emphasizing that the transition enables "our U.S. users to continue to discover, create, and thrive as part of TikTok's vibrant global community and experience."
The weekend's service disruption, while temporary, highlights the complex infrastructure dependencies and ongoing challenges facing TikTok as it navigates its new identity as a primarily American-owned platform while maintaining global operations and addressing persistent privacy and security concerns among its massive user community.
