TikTok has officially confirmed the establishment of the TikTok USDS Joint Venture LLC, a strategic partnership designed to comply with the Protecting Americans from Foreign Adversary Controlled Applications Act. The move allows over 200 million Americans and 7.5 million businesses to continue using the platform, ending years of uncertainty surrounding its U.S. operations.
Governance and Operational Structure
The joint venture operates under a seven-person oversight panel, featuring TikTok CEO Shou Zi Chew, Silver Lake’s Egon Durban, and Oracle’s Kenneth Glueck. The investor consortium—including Oracle, Silver Lake, and MGX—collectively holds 45% of the U.S. operation, while ByteDance retains nearly 20%. The venture encompasses TikTok, CapCut, Lemon8, and other apps in the U.S. market, maintaining user continuity without requiring a new app download.
Algorithm Retraining and Data Security
The joint venture will retrain and update TikTok’s content recommendation algorithm using U.S. user data, secured within Oracle’s American cloud environment. This represents a significant restructuring of TikTok’s technology infrastructure to address national security concerns. The operation implements comprehensive data protections, algorithm security, and content moderation policies while ensuring accountability through transparency reporting and third-party certifications.
The agreement concludes five years of regulatory negotiations and delivers on President Trump’s promise to preserve TikTok’s availability in America. The January 22 announcement meets the deadline extension granted by the administration, allowing TikTok to maintain its position as a major social media platform while addressing U.S. government security requirements.