The new joint venture will operate under stringent safeguards covering data privacy, algorithm security, content moderation, and software assurance. Image source: TikTok USDS
TikTok has officially finalized the establishment of the TikTok USDS joint venture LLC, a majority American-owned entity designed to secure US user data and operations, just ahead of the Friday deadline set by President Donald Trump, according to a statement.
The move ensures more than 200 million Americans and 7.5 million US businesses can continue using TikTok’s platform while addressing national security concerns tied to its Chinese parent company, ByteDance.
Algorithm security
The new joint venture will operate under stringent safeguards covering data privacy, algorithm security, content moderation, and software assurance. US user data will be stored in Oracle’s secure US cloud environment and protected under standards including NIST CSF, ISO 27001, and CISA guidelines. The company will retrain and secure the content recommendation algorithm domestically and oversee apps such as TikTok, CapCut, and Lemon8.
The joint venture is led by CEO Adam Presser, who previously oversaw TikTok’s US data security efforts, and Chief Security Officer Will Farrell. It is governed by a seven-member, majority-American board including TikTok CEO Shou Chew, Oracle executive Kenneth Glueck, and representatives from Silver Lake, MGX, and Susquehanna International Group.
Ownership includes three managing investors—Silver Lake, Oracle, and MGX—each holding 15%, with ByteDance retaining 19.9%. Additional investors include the Dell Family Office, Alpha Wave Partners, and other global private equity and investment firms.
Deal closure
The structure ensures US oversight while maintaining interoperability with TikTok’s global platform, enabling American creators and businesses to participate in the broader TikTok ecosystem.
The establishment concludes a multi-year effort to secure TikTok’s US operations after national security concerns prompted Trump to initially seek a ban in 2020. Trump praised the deal on Truth Social, thanking Chinese President Xi Jinping for approving the transaction and lauding his administration for bringing it to a “dramatic, final, and beautiful conclusion.”
The joint venture marks a milestone in US-China tech relations, balancing national security with consumer access.
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