TikTok launches U.S.-controlled joint venture to meet national security rules

TikTok has created a new U.S.-based joint venture designed to comply with federal national security requirements and keep the app operating for more than 200 million Americans.

The new entity, TikTok USDS Joint Venture LLC, was formally established under an executive order signed by President The President on Sept. 25, 2025, according to an announcement released today.

The big picture. TikTok USDS Joint Venture is majority American-owned and operates as an independent entity with responsibility for U.S. user data, content moderation, and algorithm security. ByteDance retains a 19.9% stake, below the threshold often cited by U.S. officials as a national security concern.

The joint venture builds on TikTok’s existing U.S. Data Security (USDS) program and is designed to ringfence sensitive systems from foreign access.

Why we care. this joint venture may determine whether TikTok can continue operating in the U.S. without bans or forced divestment. It shifts control of U.S. user data, content moderation, and the recommendation algorithm into a majority American–owned, U.S.-governed entity, addressing long-standing national security concerns.

For creators, advertisers, and platforms watching closely, it’s a test case for how the U.S. may regulate foreign-owned tech going forward.

How the safeguards work. U.S. user data will be stored and protected in Oracle’s U.S.-based cloud infrastructure, with ongoing audits and third-party cybersecurity certifications. The joint venture says its security program aligns with federal and industry standards, including NIST, ISO 27001, and CISA requirements.

The content recommendation algorithm for U.S. users will be retrained, tested, and updated using U.S. data, and secured entirely within Oracle’s U.S. environment. Source code will be reviewed on an ongoing basis under software assurance protocols.

Trust, safety, and content moderation. Unlike prior arrangements, the joint venture has decision-making authority over trust and safety policies and content moderation for U.S. users. That authority is intended to ensure accountability and reduce foreign influence over sensitive moderation decisions.

Global reach, U.S. control. While the joint venture controls U.S. security and safety functions, TikTok’s global U.S. entities will continue managing interoperability and commercial operations such as advertising, marketing, and e-commerce. TikTok says this structure allows U.S. creators and businesses to remain discoverable worldwide.

Who’s in charge. The joint venture is governed by a seven-member, majority-American board, including executives from Silver Lake, Oracle, Susquehanna International Group, and MGX.

Adam Presser was appointed CEO, and Will Farrell was named Chief Security Officer. The board’s security committee is chaired by Raul Fernandez, CEO of DXC Technology.

Ownership structure. Silver Lake, Oracle, and MGX are the joint venture’s three managing investors, each holding 15%. Additional investors include firms affiliated with Michael Dell, General Atlantic, Dragoneer, and Xavier Niel. The safeguards also extend to CapCut, Lemon8, and other TikTok-owned apps in the U.S.

What’s next. The announcement positions TikTok USDS Joint Venture as a long-term solution to U.S. regulatory pressure. Whether it fully satisfies lawmakers and national security agencies — and finally stabilizes TikTok’s U.S. future — will become clear as oversight and enforcement begin.

Catch-up. $14 billion deal keeps TikTok alive in U.S.

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