TikTok USDS Joint Venture LLC said it was formally established to comply with a U.S. executive order signed on September 25, 2025, allowing TikTok to continue operating for more than 200 million American users and 7.5 million U.S. businesses.
The majority American-owned entity is tasked with securing U.S. user data, applications, and TikTok’s recommendation algorithm through defined safeguards covering data protection, algorithm security, content moderation, and software assurance.
Under the structure, U.S. user data will be stored in a secure U.S. cloud environment operated by Oracle.
The joint venture said its privacy and cybersecurity program will be independently audited and aligned with standards such as NIST, ISO 27001, and CISA security requirements.
The joint venture will also retrain and operate the content recommendation algorithm using U.S. user data, retain authority over trust and safety policies, and oversee ongoing source code reviews with Oracle as its trusted security partner.
TikTok USDS Joint Venture is governed by a seven-member board with a majority of American directors and is led by CEO Adam Presser, with Will Farrell serving as chief security officer. ByteDance retains a 19.9% ownership stake.
Why This Matters Today
You are seeing one of the most comprehensive restructurings of a major social platform in response to U.S. national security concerns.
The joint venture creates a formal separation between TikTok’s U.S. operations and its global parent, placing sensitive assets under domestic control and oversight.
This structure addresses long-standing regulatory pressure around data access, algorithm influence, and content governance.
By housing data and algorithm operations in U.S.-based infrastructure and granting decision authority to an independent board, TikTok aims to reduce the risk of future bans or forced divestitures.
The move also preserves interoperability with TikTok’s global platform, allowing U.S. creators and businesses to reach international audiences while maintaining compliance with U.S. security requirements.
Our Key Takeaways:
- TikTok established a U.S.-based joint venture to comply with federal security requirements and continue operating nationwide.
- The new entity assumes control over U.S. user data, algorithm operations, and trust and safety governance.
- Regulators and markets will closely watch whether this structure becomes a template for future tech compliance cases.
You may also want to check out some of our other tech news updates.
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