TikTok announced a new U.S.-based joint venture to meet federal national security requirements and keep the app available to more than 200 million Americans.
The entity, TikTok USDS Joint Venture LLC, was established under an executive order signed by President Trump on Sept. 25.
The big picture. TikTok USDS Joint Venture is majority American-owned and operates independently, with control over U.S. user data, content moderation, and algorithm security.
- ByteDance holds a 19.9% stake, below the threshold U.S. officials have often cited as a national security risk.
- The joint venture expands TikTok’s existing U.S. Data Security program and is designed to isolate sensitive systems from foreign access.
Why we care. This joint venture could decide whether TikTok continues operating in the U.S. without bans or forced divestment. It moves control of U.S. user data, content moderation, and the recommendation algorithm to a majority American-owned, U.S.-governed entity, directly addressing long-standing national security concerns. For creators, advertisers, and rival platforms, it serves as a test case for how the U.S. may regulate foreign-owned technology going forward.
How the safeguards work. U.S. user data will be stored and protected in Oracle’s U.S.-based cloud, supported by ongoing audits and third-party cybersecurity certifications.
- The joint venture says its security program meets federal and industry standards, including NIST, ISO 27001, and CISA requirements.
- The recommendation algorithm for U.S. users will be retrained, tested, and updated using U.S. data, then secured entirely within Oracle’s U.S. environment.
- The source code will undergo continuous review under formal software assurance protocols.
Trust, safety, and content moderation. Unlike earlier arrangements, the joint venture holds decision-making authority over trust and safety policies and content moderation for U.S. users. This control is designed to strengthen accountability and limit foreign influence over sensitive moderation decisions.
Global reach, U.S. control. While the joint venture oversees U.S. security and safety functions, TikTok’s global U.S. entities will continue to manage interoperability and commercial operations, including advertising, marketing, and ecommerce.
- This structure keeps U.S. creators and businesses discoverable worldwide, TikTok said.
Who’s in charge. The joint venture is overseen by a seven-member board with a majority of American directors, including executives from Silver Lake, Oracle, Susquehanna International Group, and MGX.
- Adam Presser was appointed CEO, and Will Farrell was named chief security officer.
- The board’s security committee is chaired by Raul Fernandez, CEO of DXC Technology.
Ownership structure. Silver Lake, Oracle, and MGX are the joint venture’s three managing investors, each holding 15%.
- Additional investors include firms affiliated with Michael Dell, General Atlantic, Dragoneer, and Xavier Niel.
- The safeguards also extend to CapCut, Lemon8, and other TikTok-owned apps in the U.S.
What’s next. The announcement positions TikTok USDS Joint Venture as a long-term solution to U.S. regulatory pressure. Whether it fully satisfies lawmakers and national security agencies — and finally stabilizes TikTok’s U.S. future — will become clear as oversight and enforcement begin.
