TikTok has now officially confirmed that it’s established a new joint venture with a group of U.S. partners to meet the requirements of the Protecting Americans from Foreign Adversary Controlled Applications Act in the U.S., which will ensure that the platform remains in operation for U.S. users.
As per TikTok:
“Today, TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, now enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience. The majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.”
TikTok says that the USDS Joint Venture’s mandate is to secure U.S. user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures.
“It will safeguard the U.S. content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications.”
The business will be overseen by a seven person panel, including TikTok CEO Shou Zi Chew, Egon Durban of Silver Lake, and Kenneth Glueck from Oracle.
The new venture will also cover CapCut and Lemon8, as well as “a portfolio of other apps and websites in the U.S.”
Also, TikTok’s algorithm will be partially re-written:
“The Joint Venture will retrain, test, and update the content recommendation algorithm on U.S. user data. The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment.”
That could mean a change, though it depends on exactly how much the group is required to change, and how much it can share with TikTok’s Chinese head office.
TikTok also says that U.S. users will not have to download a new app, as had been indicated in some reports.
So, after five years of back and forth, TikTok has been saved, with TikTok, and parent company ByteDance, maintaining a significant stake in the app.
TikTok had till tomorrow (Jan. 23) to meet the requirements of the bill, based on the latest extension of its deadline granted by U.S. President Donald Trump. The Oracle-led joint venture was pitched to TikTok execs back in September, and it’s taken four months to hash out the final details and ensure it ticks all the boxes.
Semafor had reported earlier in the day that a deal was imminent, with U.S. and Chinese negotiators finally coming to terms, and signing off on the particulars.
As further reported by TechCrunch:
“According to a memo viewed by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will hold 45% of the U.S. operation, with ByteDance keeping nearly a 20% stake.”
The new TikTok entity will essentially operate a separate variation of the app in the U.S., though as noted, it will not require users to download a new app.
So good news for TikTok users and creators, while the company has also had a win on another foreign front.
TikTok is also celebrating a win in Canada, with a federal court ruling that the Canadian government’s attempts to force the company out of the local market due to national security concerns are not valid.
In November 2024, the Canadian government issued an order for TikTok to dissolve its Canadian business, citing national security risks. At the time, then Canadian Innovation Minister Francois-Philippe Champagne said that the order was based on “national security risks” focusing specifically on the operations “conducted in Canada by TikTok at their offices.”
Canadian authorities offered no further clarification, but basically, there were concerns that something happening in the local TikTok buildings was cause for concern.
To be clear, the order does not relate to the app being available in the region, TikTok would still be accessible in Canada either way, but the ruling would have forced TikTok’s local business to shut down, and cease operations in the nation.
Which would have impacted hundreds of local TikTok employees, but now, they can rest easy, with the court siding with TikTok in opposing the ban.
Possibly also worthy of note is that the Canadian government also signed a new bilateral agreement with China this week.
So while there are some lingering concerns about the app, and the threat of foreign surveillance and manipulation remains significant, based on various cybersecurity advisories, TikTok will remain active and available in most regions.
Is that a good thing? Well, it is for creators, and for the many millions of people who scroll through the app every day. But in terms of foreign interference, it seems like there’s still some element of concern there, which may never come to anything, or may become a much bigger deal, likely in retrospect.
Either way, TikTok is saved, as President Trump had promised.
