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TikTok Forms US Joint Venture to Meet Security Demands, Keep App Running

TikTok has established a new US-based joint venture to comply with a federal security order and allow its American users to continue accessing the platform. The entity, majority American-owned, will independently control US user data, content algorithms, and moderation, storing data within Oracle's US cloud system. A seven-member board with a majority of American directors, including TikTok CEO Shou Chew, will govern the venture, which is led by CEO Adam Presser. The structure aims to meet national security concerns while maintaining the app's operability for over 200 million US users and millions of businesses.

Key Points: TikTok Creates US Joint Venture Under Security Order

  • New US entity controls data & algorithm
  • US data stored in Oracle cloud
  • Independent board with US majority
  • Structure complies with Trump-era order
  • Safeguards extend to CapCut, Lemon8
3 min read

TikTok forms US joint venture under security order

TikTok forms a new US-based joint venture to comply with federal security requirements, safeguarding data on Oracle's cloud to keep the app available.

"The goal is to protect national security while keeping TikTok available in the United States. - TikTok"

Washington, Jan 23

TikTok said it has created a new US-based joint venture to meet federal security requirements and allow Americans to keep using the popular video app.

The new entity, called TikTok USDS Joint Venture LLC, was formed under an executive order signed by President Donald Trump on September 25, 2025. TikTok said the move will allow more than 200 million Americans and 7.5 million US businesses to continue using the platform.

TikTok said the joint venture is majority American-owned and will operate as an independent company. It will control data security, the content algorithm and content moderation for US users.

The company said the goal is to protect national security while keeping TikTok available in the United States.

Under the new structure, US user data will be stored in Oracle's secure cloud system located in the United States. TikTok said the data will be protected by strict privacy and cybersecurity controls.

The joint venture will run a cybersecurity program that is reviewed and certified by outside experts. TikTok said the program will follow US and global security standards, including those set by NIST and the Cybersecurity and Infrastructure Security Agency.

TikTok said the US entity will also retrain and update the app's recommendation algorithm using only US user data. The algorithm will also be secured inside Oracle's US cloud environment.

The company said software used in the US will undergo regular reviews. Oracle will serve as a trusted security partner and help validate source code on an ongoing basis.

The joint venture will have full authority over trust and safety policies in the United States. This includes decisions on content moderation. TikTok said it will provide transparency reports and allow third-party reviews to ensure accountability.

TikTok said US users will still be able to reach global audiences. The platform will remain interoperable with TikTok's global system. US creators and businesses will continue to operate internationally.

The joint venture will be governed by a seven-member board with a majority of American directors. TikTok CEO Shou Chew will serve on the board.

Other board members include executives from Silver Lake, Oracle, Susquehanna International Group and MGX. Raul Fernandez, CEO of DXC Technology, will serve as an independent director and chair the board's security committee.

The board named Adam Presser as chief executive officer of TikTok USDS Joint Venture. Presser previously held senior roles at TikTok and WarnerMedia.

Will Farrell was appointed chief security officer. He will oversee data protection and cybersecurity. Farrell previously worked at TikTok and Booz Allen Hamilton.

TikTok said Silver Lake, Oracle and MGX are the three managing investors. Each holds a 15 per cent stake. ByteDance will retain a 19.9 per cent ownership share.

The security safeguards will also apply to other TikTok-owned apps in the US, including CapCut and Lemon8.

TikTok said the new structure ensures Americans can continue to create, share and do business on its platforms while meeting US security and regulatory demands.

- IANS

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Reader Comments

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Priya S
Interesting! So the US gets to keep TikTok with safeguards, but we in India just got a blanket ban. Feels a bit unfair for our youth who built careers on it. Maybe a JV with an Indian tech giant like TCS or Infosys could have been explored? 🤔
R
Rohit P
Good step for US security. But let's be real, the algorithm is the real asset. Retraining it only on US data will change the content drastically. It might become a very different app. Indian apps that replaced TikTok have a different vibe altogether.
S
Sarah B
As someone who works in tech, the Oracle cloud partnership and independent board look robust on paper. The key will be enforcement and transparency. Hope they follow through with those third-party audits.
V
Vikram M
Our government's decision was for national security, and we must respect that. But this US model shows there can be middle-ground solutions. Data localisation and Indian control could have saved thousands of jobs here. A missed opportunity for a 'Make in India' tech deal.
K
Kavya N
My younger cousins were so upset when TikTok left. They moved to Instagram Reels, but it's not the same. This news just reminds them of what they lost. Maybe it's time for a truly Indian short-video app to rise up and capture the global market! 🇮🇳
M

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