TikTok has announced the creation of a new US-based joint venture, TikTok USDS Joint Venture LLC, to comply with federal security requirements while allowing Americans to continue using the popular video app. The move comes under an executive order signed by President Donald Trump on September 25, 2025, and affects more than 200 million US users and 7.5 million US businesses.
The joint venture is majority American-owned and will operate independently, controlling data security, content moderation, and the recommendation algorithm for US users. US user data will be stored in Oracle's secure cloud system, protected by strict privacy and cybersecurity controls. A cybersecurity program, certified by outside experts, will follow US and global security standards, including those set by NIST and the Cybersecurity and Infrastructure Security Agency.
The platform's recommendation algorithm will be retrained using only US data, and software used in the country will undergo regular reviews. Oracle will serve as a trusted security partner, validating source code and ensuring ongoing compliance. The US entity will also have full authority over trust and safety policies, including content moderation, while remaining interoperable with TikTok's global platform so US creators and businesses can continue operating internationally.
The joint venture will be governed by a seven-member board, with a majority of American directors. TikTok CEO Shou Chew will serve on the board, alongside executives from Silver Lake, Oracle, Susquehanna International Group, MGX, and Raul Fernandez, CEO of DXC Technology, who will chair the board's security committee. Adam Presser, a former senior executive at TikTok and WarnerMedia, has been appointed CEO of TikTok USDS Joint Venture, while Will Farrell, previously at TikTok and Booz Allen Hamilton, will serve as chief security officer.
Silver Lake, Oracle, and MGX are the managing investors, each holding a 15 per cent stake, while ByteDance will retain a 19.9 per cent ownership share. The same security safeguards will apply to TikTok-owned apps in the US, including CapCut and Lemon8.
TikTok said the new structure ensures Americans can continue creating, sharing, and conducting business on its platforms while meeting US security and regulatory requirements. A White House official confirmed that both the US and Chinese governments have signed off on the deal, and former President Trump acknowledged Chinese President Xi Jinping's role in finalising the agreement.
(With inputs from IANS)
