TikTok’s U.S. Operations Shift to Majority American Ownership

TikTok’s U.S. business has undergone a structural change following the establishment of a new entity, TikTok USDS Joint Venture LLC, on January 22, 2026. This development follows requirements set by a 2024 law targeting foreign-controlled applications.

The new joint venture places majority ownership of TikTok’s U.S. operations in the hands of American and global investors, with ByteDance holding a minority interest. Oracle, Silver Lake, and MGX each hold 15% stakes, while other investors account for the remaining shares, resulting in non-Chinese majority control.

The U.S. entity is responsible for overseeing data protection, algorithm security, content moderation, and software assurance for users in the United States. These responsibilities are designed to address regulatory requirements and ensure compliance with established standards.

Data from U.S. users is now stored within Oracle’s secure cloud infrastructure located in the United States. Oversight of this data storage includes third-party audits and adherence to standards such as NIST and ISO 27001, according to published information.

What the numbers show

• 19.9% of the U.S. entity is owned by ByteDance
• Oracle, Silver Lake, and MGX each control 15% stakes
• The board consists of seven members, with a majority being American

The recommendation algorithm for TikTok in the U.S. is now licensed from ByteDance but is retrained, tested, and updated using data from American users under the new entity’s control. This process is managed by the U.S. team and is intended to align with local oversight requirements.

TikTok’s terms of service for U.S. users have been updated to reflect the new contractual relationship with the U.S. entity. These terms include restrictions on use by children under 13 outside the designated “Under 13 Experience” and provide disclaimers about generative AI risks.

For users in the United States, the transition does not require downloading a new version of the app. Existing accounts, content, and creator profiles remain unchanged at this stage, with the user experience continuing as before for now.

It remains uncertain how changes to the recommendation algorithm will affect content personalization for U.S. users. The retraining of the algorithm may result in gradual and subtle differences, but no immediate or specific changes have been detailed.

The structural change resolves the risk of TikTok being removed from U.S. app stores by meeting the requirements of the 2024 law. The new entity is governed by a seven-member board with a majority of American members and is led by CEO Adam Presser.

* This article is based on publicly available information at the time of writing.