TikTok announced on Thursday, January 22, 2026, that it has created a new joint venture, TikTok USDS Joint Venture LLC, to operate its U.S. business. The move allows the company to avoid a ban over its Chinese ownership while serving more than 200 million users and 7.5 million businesses in the United States.
The joint venture will implement strict safeguards for data protection, algorithm security, and content moderation, addressing long-standing concerns from U.S. policymakers about the app’s ties to China.
Responding to U.S. Law
The new structure responds to a 2024 law passed under President Joe Biden, which required Chinese-owned ByteDance to sell TikTok’s U.S. operations or face a ban in its largest market.
ByteDance will retain a 19.9 percent stake, keeping its ownership below the 20 percent threshold stipulated by the law.
Trump Welcomes the Deal
President Donald Trump welcomed the arrangement, claiming credit for saving TikTok and thanking Chinese President Xi Jinping for approving the deal.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump posted on Truth Social.
He added:
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal.”
Key Investors and Governance
Three major investors Silver Lake, Oracle, and Abu Dhabi-based AI investment fund MGX — each hold 15 percent stakes. Oracle’s executive chairman Larry Ellison, a longtime Trump ally, is a central figure in the arrangement.
Other investors include the Dell Family Office, affiliates of Susquehanna International Group, General Atlantic, and several other firms.
The joint venture will be governed by a seven-member, majority-American board, including TikTok CEO Shou Chew and executives from major investment firms.
TikTok executive Adam Presser has been appointed CEO of the new entity, with Will Farrell serving as chief security officer.
Data Security and Oversight
Under the arrangement, U.S. user data will be stored in Oracle’s secure cloud environment, with cybersecurity audited by third-party experts and adhering to federal standards.
The joint venture will retain decision-making authority over trust and safety policies and content moderation for U.S. users, while TikTok’s global entities will continue managing international product integration, e-commerce, and advertising.
Political and Business Context
The 2024 law was driven by concerns that China could use TikTok to mine Americans’ data or exert influence through its algorithm. While Trump delayed enforcement through successive executive orders, he ultimately extended the deadline to January 22, 2026, paving the way for the deal.
In September, Vice President JD Vance estimated the U.S. entity’s value at $14 billion, though final pricing would be determined by investors.
Ellison’s involvement has also drawn attention, as he has re-emerged in the spotlight through partnerships with Trump in AI ventures and by financing his son David’s takeover of Paramount and bidding war with Netflix for Warner Bros.
Conclusion
The establishment of TikTok USDS Joint Venture LLC marks a significant restructuring of the app’s U.S. operations, balancing political demands with business realities. With majority American ownership, strict data safeguards, and high-profile investors, TikTok aims to secure its future in the U.S. market while continuing to expand globally.
