Archive · 25 Jan 2026
TikTok Secures Future in US
TikTok has made a deal to keep working in the US.
They created a new company called TikTok USDS Joint Venture LLC, which is mostly owned by American investors.
The Chinese company ByteDance, which owns TikTok, will have a small part of this new company.
Oracle, another tech company, will now manage TikTok's special algorithm that shows you videos you like.
Some lawmakers are worried about this deal.
TikTok says users won't need a new app, and the app will still feel mostly the same.
There might be small changes in the videos you see because the algorithm will be updated using US data.
The deal also includes safety rules for kids and mentions that the app uses AI that might sometimes make mistakes.
Other apps owned by ByteDance, like CapCut and Lemon8, will also follow these new rules.
TikTok has reached a deal to continue operating in the US, creating a new US-based entity majority-owned by American investors.
ByteDance retains a 19.9% stake in the new entity, while Oracle will manage TikTok's algorithm and user data.
Lawmakers have expressed concerns about the deal, calling for investigations and transparency.
US users will agree to new terms with the new entity, including restrictions for children and acknowledgment of AI limitations.
The algorithm will be retrained on US user data, potentially leading to subtle changes in content.
- Who
- TikTok, ByteDance, Oracle, US lawmakers, TikTok users
- What
- TikTok secures deal to continue operating in the US
- When
- Effective immediately, terms updated January 22
- Where
- United States
- Why
- To comply with US regulations and ensure continued operation
- US Entity
- TikTok USDS Joint Venture LLC
- Ownership
- Majority-owned by American investors, ByteDance retains 19.9%
- Algorithm Management
- Licensed to Oracle
- User Data
- Managed by Oracle in US cloud environment
- Board Members
- Seven-member board including TikTok CEO Shou Zi Chew
- Terms Update
- Effective January 22 for US users
- Content Changes
- Algorithm retrained on US user data
- Related Apps
- Safeguards extend to CapCut and Lemon8
Sources
TikTok Secures Future in US: What Users Can Expect
Chinese apps dominated Android and iOS downloads in US in 2025 — Here's how TikTok, CapCut, Temu, Shein fared
TikTok survives in the US, thanks to a new corporate structure. Could India have taken the same road?
TikTok Strikes US Deal After Years Of Uncertainty. What To Know
