TikTok Adds New US Owners in Joint Venture

TikTok will keep operating in the US under a newly formed, majority US-owned joint venture that carves out American operations from its Chinese parent, ByteDance. The entity, TikTok USDS Joint Venture LLC, says it will localize data storage, retrain the recommendation algorithm on US data, and move US content moderation under its direct control—changes that could subtly reshape what shows up in your For You feed.

What Changes in Your For You Feed Under the New JV

The joint venture plans to retrain and maintain a US-specific version of TikTok’s recommendation system in Oracle’s US cloud, separate from the global algorithm. Practically, that means the feed should lean more into US culture, news, and creators—and potentially down-rank content patterns that have worried Washington policymakers. You may notice a short “recalibration” period as the model relearns your preferences. If your feed feels off, the fastest way to re-teach it is to engage heavily with videos you like and “Not Interested” those you don’t.

Expect incremental—not overnight—shifts. Recommendation engines are tuned to maximize watch time, and wholesale changes risk breaking what keeps users scrolling. Still, even small adjustments in political or geopolitical content weighting can be felt at scale.

Data Storage and Privacy Controls Under US Oversight

US user data will be stored on Oracle’s US servers, echoing the prior $1.5 billion Project Texas effort but with tighter corporate separation and additional auditing. The joint venture says it will wall off US data from non-US access and keep US algorithm training artifacts stateside. That addresses a core concern of US officials, though your day-to-day privacy trade-offs—ad targeting, device signals, and cross-app tracking—are largely unchanged unless new policies are announced.

For consumers, the immediate privacy win is governance and auditability more than fewer data points collected. Watch for updated privacy policies, new in-app transparency centers, and third-party audit summaries. Regulators including the Federal Trade Commission and state attorneys general will likely scrutinize any gaps.

Moderation and Safety Move Stateside With US Control

The joint venture will run US content moderation, trust, and safety policies, aiming to “safeguard the US content ecosystem.” That could bring clearer appeals processes, more responsive enforcement on harmful or misleading content, and potentially stricter rules during elections. TikTok’s teen protections—like default 60-minute daily limits for minors and tighter direct messaging controls—are expected to remain and may be expanded under US oversight.

Pew Research Center has found roughly one-third of US adults use TikTok, and a majority of teens report using it, underscoring why safety policies will be a focal point for parents, schools, and policymakers.

Who Owns What Now in the TikTok USDS Joint Venture

ByteDance retains a minority stake at 19.9%. A 45% block is split evenly among three managing investors: US private equity firm Silver Lake, US technology company Oracle, and UAE investment firm MGX. The remaining 35.1% is distributed among a roster of largely US investors, including Dell Family Office and an affiliate of Susquehanna International Group. The board is majority American, with leadership drawn from both TikTok’s existing US executives and the new investors.

This structure is designed to satisfy US national security concerns while preserving continuity for users and creators. It also creates clear accountability lines for audits and government reviews, similar to arrangements seen in other Committee on Foreign Investment in the United States (CFIUS) mitigation agreements.

Impact on Creators and Brands as US Control Grows

For creators, the business fundamentals remain intact: the recommendation graph still drives discovery, TikTok Shop continues expanding, and ads stay central to monetization. Because the US algorithm will be trained locally, creators who tailor content to US audiences could see steadier reach domestically. The company says US-made videos will still be distributed internationally, though it has not guaranteed the same volume of international content flowing into US feeds.

Brands should anticipate more US-facing controls for brand safety, political ad eligibility checks, and election-related safeguards. With roughly 170 million US users reported by TikTok in congressional testimony, the platform’s advertising reach won’t shrink; what may evolve is the risk posture and reporting granularity demanded by major advertisers.

Will This End the Ban Debate or Just Delay It

The governance shift substantially reduces the likelihood of a near-term US ban by aligning data control, algorithm custody, and moderation with US oversight. But it does not end scrutiny. Expect periodic audits, transparency reports, and potential consent decrees to codify access controls. Any future lapses—especially around sensitive data or political interference—would revive pressure quickly.

What Users Should Watch Next as Policies Evolve

Short term, monitor your feed for subtle changes and retrain it with deliberate engagement. Review your privacy settings, including ad interests and off-platform activity. If you manage a teen’s account, revisit Family Pairing and screen time limits as policies update.

Medium term, look for new transparency tools, updated community guidelines tailored to US law, and clearer reporting on how sensitive topics are moderated. The promise of more localized control is meaningful; the proof will be in how it shapes the videos you actually see—and the explanations you get when you ask why.