Database specialist Oracle has confirmed that TikTok parent Bytedance has asked it to become a "trusted technology partner" to the video-sharing app.
The move ends weeks of speculation over which company Bytedance would strike a deal with in the US as it seeks to appease regulators and maintain TikTok's presence in the country.
What does it mean?
The full scope of this partnership hasn't yet been set out but will introduce changes designed to see off a threat by President Trump to shut down the platform at a minimum.
This will centre around the handling of user data amid concern that Beijing may have access to the personal information of 100 million American users.
Bytedance has strenuously denied such allegations, stressing that its servers are located in the US and Singapore and that it has employed 'extraordinary measures' to ensure privacy and security.
The fast-moving story has also seen the US division of TikTok contact the Treasury Department to ask if establishing a distinct US-headquartered company would satisfy concerns.
The Oracle tie-up follows the collapse of a potential Microsoft buyout yesterday after Bytedance snubbed its overtures.
What is TikTok saying?
TikTok has remained purposefully vague in its public pronouncements thus far, refusing to even utter the name Oracle.
TikTok must tread a fine line in its response amid concerns of its own that the US demands are politically driven.
Addressing the future obliquely, TikTok stated: "We can confirm that we've submitted a proposal to the Treasury Department which we believe would resolve the administration's security concerns."
Why does this matter?
A trade war between the US and China has focussed on the technology sector with firms such as Huawei and Tencent encountering new restrictions on conducting business in the US.
Bytedance has been handed a deadline of this week to conclude a deal. Beyond which American firms would be barred from engaging with the video-sharing app.
It would also have triggered a process by which TikTok must cede its US operations by 12 November.
TikTok has exploded in popularity across the west in recent months, drawing millions of Americans and Europeans with a diet of video-based pranks, dancing and lip-syncing