Ravie LakshmananJan 23, 2026Regulatory Compliance / Nationwide Safety
TikTok on Friday formally introduced that it fashioned a three way partnership that can enable the massively fashionable video-sharing software to proceed working within the U.S.
The brand new enterprise, named TikTok USDS Joint Enterprise LLC, has been established in compliance with the Government Order signed by U.S. President Donald Trump in September 2025, the platform mentioned. The brand new deal will see TikTok’s Chinese language mum or dad firm, ByteDance, promoting nearly all of its stake to a gaggle of majority-American traders, whereas it should retain a 19.9% stake within the enterprise. The Chinese language authorities hasn’t commented publicly on the settlement.
“The bulk American owned Joint Enterprise will function underneath outlined safeguards that shield nationwide safety by means of complete knowledge protections, algorithm safety, content material moderation, and software program assurances for U.S. customers,” it added.
“It’ll safeguard the U.S. content material ecosystem by means of strong belief and security insurance policies and content material moderation whereas making certain steady accountability by means of transparency reporting and third-party certifications.”
To that finish, U.S. customers’ knowledge can be protected with Oracle’s safe U.S. cloud setting, whereas additionally retraining and updating TikTok’s content material suggestion algorithm particularly based mostly on customers within the nation. The advice algorithm can be secured utilizing Oracle’s cloud infrastructure as nicely.
As well as, the impartial entity is anticipated to function a complete knowledge privateness and cybersecurity program that it mentioned can be audited and licensed by third-party cybersecurity specialists.
“This system will adhere to main trade requirements, together with the Nationwide Institute of Requirements and Know-how (NIST) CSF and 800-53 and ISO 27001, in addition to the Cybersecurity and Infrastructure Safety Company (CISA) Safety Necessities for Restricted Transactions, the corporate mentioned.
The safeguards rolled out by the three way partnership can even lengthen to CapCut, Lemon8, and TikTok’s different apps and web sites within the U.S. TikTok is utilized by over 200 million Individuals and seven.5 million companies.
President Trump hailed the deal in a Reality Social submit, stating that the corporate would now be owned by a “group of Nice American Patriots and Buyers, the Largest within the World.” He additionally thanked Chinese language President Xi Jinping for working together with his administration, and “finally, approving the Deal.”
The event comes a month after studies emerged that TikTok had signed an settlement to create a brand new U.S. three way partnership. Below President Trump’s September 2025 govt order, the lawyer common was blocked from implementing the nationwide safety regulation for a 120-day interval with the intention to “allow the contemplated divestiture to be accomplished,” permitting the deal to be finalized by January 23, 2026.
TikTok was briefly banned a 12 months in the past after a federal regulation, signed by former President Joe Biden, went into impact. The laws, handed in April 2024, mandated that the service be made out there both underneath American possession or one other entity, citing nationwide safety considerations over its Chinese language proprietor, ByteDance.
Lawmakers have argued that Beijing might power the agency at hand over U.S. customers’ knowledge, a declare that each TikTok and ByteDance have persistently denied. These fears have additionally led to an outright ban of TikTok in India in June 2020. In late 2024, the Canadian authorities ordered TikTok to dissolve its operations within the nation.
