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The company said the new entity, TikTok USDS Joint Venture LLC, was formed in response to an executive order signed by U.S. President Donald Trump in September 2025. Under the agreement, TikTok’s parent company ByteDance will reduce its ownership position by selling most of its stake to a group of majority-American investors, while maintaining a 19.9% stake in the new venture.
So far, the Chinese government has not made any public statement regarding the deal.
TikTok says the new venture will operate with “national security safeguards”
In its announcement, TikTok emphasized that the new U.S.-based structure will run under strict controls intended to protect U.S. interests. The company said the joint venture will include safeguards focused on:
- stronger data protection for U.S. users
- security measures around the recommendation algorithm
- improved content moderation standards
- software integrity and assurance controls
TikTok also said it will implement expanded transparency and oversight, including reporting and independent certifications meant to ensure continued accountability.
Oracle to play major role in data and algorithm protection
A key part of the plan involves moving U.S. user data into Oracle’s secure U.S. cloud environment, helping TikTok meet expectations that American user data should remain protected under U.S. infrastructure.
TikTok also stated that the U.S. version of its recommendation algorithm will be retrained and updated using U.S.-specific user data and then protected through Oracle’s cloud security stack.
Third-party audits and security standards promised
The company said the new venture will operate a full privacy and cybersecurity program, including audits and certifications from outside security experts.
TikTok claims the program will align with leading cybersecurity frameworks and standards such as:
- NIST Cybersecurity Framework (CSF)
- NIST SP 800-53
- ISO 27001
- CISA security requirements for restricted transactions
Safeguards will extend to CapCut, Lemon8, and other TikTok products
TikTok noted that the same security and privacy controls under the new structure will not only apply to TikTok itself, but also to other ByteDance-owned apps and services operating in the U.S., including CapCut and Lemon8.
TikTok remains one of the most widely used platforms in America, claiming over 200 million U.S. users and millions of businesses using the app for marketing, sales, and creator-driven commerce.
Political background: a long debate over TikTok and national security
This announcement comes after years of political pressure over concerns that TikTok’s Chinese ownership could expose U.S. user data to foreign government access. U.S. lawmakers have repeatedly argued ByteDance could be forced to share data with Beijing. TikTok and ByteDance have consistently denied those accusations.
TikTok was previously affected by U.S. restrictions, including a temporary ban after federal legislation signed by former President Joe Biden took effect in 2024. That law required TikTok to operate under acceptable ownership terms or face removal in the U.S.
Similar concerns led to broader actions internationally, including:
- India banning TikTok in 2020
- Canadian authorities later ordering TikTok to shut down operations in the country
Update: Privacy policy now allows precise location collection and AI tool data
Following the joint venture announcement, TikTok has updated its privacy policy in a way that may raise fresh questions among privacy advocates.
The new policy indicates TikTok can collect precise geolocation data, depending on device permission settings, replacing earlier language that emphasized more general or approximate location tracking.
It also includes new terms related to TikTok’s AI tools. According to the updated language, TikTok may collect information linked to user interaction with AI features, including:
- prompts and questions
- files and submitted content
- AI-generated outputs and responses