January 23, 2026 – TikTok has officially announced the establishment of TikTok USDS Joint Venture LLC, a new entity dedicated to safeguarding data security, algorithm integrity, content moderation, and software reliability for its operations in the United States. This move marks a significant step forward in the platform’s strategy to address regulatory concerns while maintaining service continuity for its vast user base.
According to the announcement, ByteDance, TikTok’s parent company, will retain ownership of the intellectual property rights to TikTok’s core algorithms. However, it has granted the newly formed joint venture a license to utilize these algorithms within the U.S. market. This arrangement ensures that TikTok’s recommendation systems and other technological foundations remain under ByteDance’s control while being implemented locally through the joint venture.
In parallel, TikTok’s commercial operations in the U.S., including e-commerce, advertising, marketing, and global product integration, will continue to be managed by a separate entity wholly owned by ByteDance. This structure allows the platform to serve over 200 million American users without interruption while enabling 7.5 million U.S.-based businesses to connect with a global audience and sustain their growth.
The joint venture’s ownership is diversified, with Oracle, Silver Lake, and MGX each holding a 15% stake. Additional investors include Vastmere Strategic Investment LLC, an affiliate of Susquehanna International Group, and Alpha Wave Partners, among others. ByteDance, however, maintains a 19.9% share, solidifying its position as the largest single shareholder. The joint venture will be governed by a seven-member board, featuring TikTok CEO Shou Zi Chew as one of its directors.
By separating data security and algorithm management from commercial operations, TikTok aims to strike a balance between regulatory compliance and business continuity. The company emphasized that this model ensures American users and creators will continue to enjoy the platform’s signature features, while U.S. businesses can leverage TikTok’s global reach to expand their customer base and drive revenue.
This development comes as TikTok seeks to reassure stakeholders of its commitment to transparency and accountability in the U.S. market. With these structural changes in place, the platform is poised to navigate evolving regulatory landscapes while sustaining its position as a leading social media and commerce platform.
