TikTok has officially confirmed the formation of a new U.S.-based joint venture, a move that allows the popular short-video platform to continue operating in the United States amid long-standing national security concerns.
The newly established entity, TikTok USDS Joint Venture LLC, was created in line with an executive order signed by U.S. President Donald Trump in September 2025. Under the agreement, TikTok’s parent company ByteDance will divest a controlling stake to a consortium of predominantly American investors, while retaining a minority ownership of 19.9%. Chinese authorities have not issued a public statement regarding the deal.
Majority U.S. Ownership and Security Safeguards
TikTok said the new joint venture will be majority American-owned and governed by strict safeguards designed to protect U.S. national security. These measures include enhanced data protection, algorithm security, transparent content moderation, and rigorous software controls tailored specifically for U.S. users.
The company stated that the structure is intended to ensure accountability through regular transparency reporting and independent third-party audits, reinforcing trust in the platform’s operations.
Oracle to Host U.S. Data and Algorithms
As part of the compliance framework, TikTok confirmed that U.S. user data will be stored and processed within Oracle’s secure cloud infrastructure located in the United States. In addition, TikTok’s recommendation algorithm will be retrained exclusively using U.S. user data and protected within Oracle’s environment.
The joint venture will also operate a comprehensive cybersecurity and privacy program subject to external audits. TikTok said the program aligns with major international and federal standards, including NIST Cybersecurity Framework, NIST 800-53, ISO/IEC 27001, and CISA security requirements for restricted transactions.
Expanded Scope Across TikTok-Owned Apps
The security and governance safeguards introduced under the joint venture will not be limited to TikTok alone. They will also apply to other ByteDance-owned apps operating in the U.S., including CapCut and Lemon8.
TikTok currently serves more than 200 million U.S. users and supports approximately 7.5 million American businesses, making it one of the country’s most influential digital platforms.
Political Backing and Regulatory Timeline
President Trump publicly praised the agreement, describing the new ownership group as a coalition of American investors and crediting cooperation from Chinese leadership in finalizing the deal.
The announcement follows earlier reports that TikTok was negotiating a U.S. restructuring. The September 2025 executive order temporarily paused enforcement of a national security law for 120 days, allowing time for ByteDance to complete the divestiture by January 23, 2026.
Background: Bans, Laws, and Global Scrutiny
TikTok’s U.S. operations have faced years of regulatory pressure. In April 2024, legislation signed by former President Joe Biden required the app to operate under non-Chinese ownership or face removal from U.S. app stores. Lawmakers have argued that Chinese ownership could allow Beijing to access U.S. user data, allegations repeatedly denied by TikTok and ByteDance.
Similar concerns led to a nationwide ban of TikTok in India in 2020, and in late 2024, Canada ordered the platform to shut down its local operations.
Privacy Policy Updates Raise New Questions
Following the formation of the joint venture, TikTok updated its U.S. privacy policy. The revised terms allow the collection of precise geolocation data, subject to device permissions, expanding beyond earlier approximate location tracking.
The policy also introduces provisions related to TikTok’s AI-powered features, permitting the collection of user-submitted prompts, files, questions, and AI-generated responses.
Looking Ahead
The creation of TikTok USDS Joint Venture LLC represents a major milestone in the platform’s effort to balance regulatory demands with continued growth in the U.S. market. While the agreement resolves immediate legal uncertainty, the expanded data collection and AI provisions suggest TikTok will remain under close scrutiny from regulators, privacy advocates, and lawmakers in the years ahead.
