TikTok is staying online in the United States, and this time the decision feels final. After years of political noise and legal pressure, the company locked in a deal that reshapes how it operates on American soil. The goal is to keep the app alive without risking national security.
The short video-sharing platform has finalized a joint venture with U.S. investors and created a new company called TikTok USDS Joint Venture LLC. That move shifts power, data control, and oversight away from its Chinese parent, ByteDance, and places it firmly under American influence.
A New Company Built to Calm Washington
Green / Pexels / The new entity is designed to meet the exact demands written into U.S. law. That law required TikTok to cut ownership and control ties with ByteDance or face a nationwide ban.
However, the ownership now sits mostly with non-Chinese investors. Oracle, Silver Lake, and MGX each hold 15 percent stakes as managing investors. Another group of eight investors holds a combined 35 percent share, including the investment office tied to Dell founder Michael Dell.
ByteDance still owns 19.9%, which is not a coincidence. U.S. law capped Chinese ownership at under 20 percent, and TikTok landed just below that line. The structure keeps ByteDance financially connected but strips it of operational control.
Leadership also shifts in a clear direction. Adam Presser, a longtime TikTok executive, will run the new venture as chief executive. Presser previously led operations and trust and safety, which puts him in a strong position to reassure regulators. He reports to a seven-member board that leans American, although TikTok global CEO Shou Chew still holds a seat.
Why Data and the Algorithm Matter Most
The heart of the TikTok debate was never just ownership. Lawmakers focused on two things: User data and the recommendation algorithm. Both sit at the center of this deal.
Oracle already stored U.S. user data through an effort called Project Texas. That arrangement now grows much larger. Oracle becomes the primary security partner for TikTok in the United States and takes responsibility for guarding user data on domestic servers.
The bigger shift involves the algorithm that controls the For You feed. This software decides what videos people see, how long they watch, and what trends explode overnight. U.S. officials worried that ByteDance could influence or access that system.
Under the final agreement, ByteDance licenses the algorithm to the new U.S. company. Oracle then re-trains, tests, and updates it using only American user data. Oracle also reviews the source code on a continuing basis.
This approach tries to walk a tight line. China has laws that claim authority over algorithms developed by Chinese firms. The U.S. demanded separation. Licensing lets ByteDance keep ownership while surrendering control.
Users may notice slow changes over time. A system trained only on U.S. data could favor local trends more often and reduce the influence of global viral content. Any shift will likely feel gradual rather than sudden.
What Led to This Initiative?
Solen / Pexels / In 2024, Congress passed a bipartisan law ordering TikTok to divest or shut down. President Joe Biden signed it, and the Supreme Court later upheld it.
The deadline landed on January 19, 2025. TikTok briefly vanished from app stores and went dark for many users. Reports varied on how long the outage lasted, but the ban was real.
Everything changed when Donald Trump returned to office. On his first day, he signed an executive order keeping TikTok operational while negotiations continued. He later directed the Justice Department not to enforce the ban, buying time for a deal.
Vice President JD Vance reportedly led much of the negotiation. He stayed in close contact with ByteDance and encouraged app stores to restore TikTok during the talks. Both the U.S. and Chinese governments ultimately signed off on the final structure.
Trump celebrated the outcome publicly, crediting cooperation from China and calling the deal a win for American users and businesses. The approval from Beijing mattered since algorithm licensing required Chinese consent.
For the nearly 200 million Americans who use TikTok, the immediate impact is minimal. The app stays online. No new download is required. Most people will open TikTok tomorrow and see the same familiar feed.
