TikTok forms majority American-owned joint venture to run US operations

New Delhi: Social media platform TikTok, announced that it has set up a new company to run its business in the United States, a move aimed at meeting American regulatory requirements and easing long-running national security concerns linked to its Chinese ownership.

The new entity, called TikTok USDS Joint Venture LLC, has been established in line with an Executive Order signed by US President Donald Trump on September 25, 2025. TikTok said the joint venture will allow more than 200 million Americans and around 7.5 million businesses to continue using the platform to create content, reach audiences and grow online.

The company stated that the joint venture will be majority American-owned and will operate with defined safeguards to protect US national security. These safeguards include stronger controls on user data, cybersecurity systems, the app’s recommendation algorithm, content moderation, and software security processes.

According to TikTok, US user data will be protected by the joint venture in Oracle’s secure cloud environment located in the United States. The company said the new setup will follow a comprehensive privacy and cybersecurity programme that will be audited and certified by third-party experts.

Furthermore, TikTok added that it plans to follow major industry standards such as the National Institute of Standards and Technology framework and ISO 27001, along with security requirements linked to restricted transactions.

The joint venture will retrain, test and update the platform’s recommendation algorithm using US user data. The algorithm will be secured in Oracle’s US cloud environment. The company said it will also strengthen app security through ongoing source code review and validation, with Oracle supporting as a trusted security partner.

In addition to this, the joint venture will have decision-making authority over trust and safety policies and content moderation in the US. At the same time, the company said it will maintain interoperability to ensure American users can still access a global TikTok experience, helping creators gain visibility and businesses operate across borders.

ByteDance, TikTok’s China-based parent company, will retain a 19.9% stake in the joint venture. The joint venture’s managing investors include Silver Lake, Oracle and MGX, with each holding 15%. Other investors include the Dell Family Office, Alpha Wave Partners, Revolution and NJJ Capital, among others.

The company said the new safeguards will also cover CapCut, Lemon8 and other apps and websites in the US.

TikTok has faced scrutiny in several countries over its Chinese affiliation. In India, TikTok remains banned, a major blow to the platform in what was once one of its biggest user markets.

However, the latest US move could be seen as TikTok’s attempt to create a model that addresses the core concerns governments have raised around data access and control. While the US joint venture is specific to American regulations, its structure, including majority local ownership, local data storage, independent oversight, and third-party security audits, may offer a template TikTok could point to in future discussions with other markets.

For India, where the ban has created space for homegrown short-video platforms and reshaped the creator economy, any potential return would likely depend on far more than a corporate restructuring in another country.

Still, if TikTok is able to demonstrate stronger separation from ByteDance and tighter safeguards over data and algorithms in the US, it may strengthen its argument that the platform can operate under strict national security conditions. 

Such a development, if replicated or adapted, could reopen the conversation around one of the world’s largest digital consumer markets, even though there is no indication yet of any change in India’s position.