TikTok Forms U.S. JV; ByteDance Keeps 19.9% Stake After EO25

TikTok forms majority U.S.-owned joint venture—ByteDance keeps 19.9%—to store U.S. data on Oracle cloud, isolate its recommendation algorithm, and adopt NIST/CISA security audits for 200M+ American users (including CapCut and Lemon8).

  • TikTok formed a U.S. joint venture, with ByteDance retaining a 19.9% stake, to keep the service operating in the United States.
  • The new entity will store U.S. user data in a secure U.S. cloud and isolate the recommendation algorithm using Oracle‘s infrastructure.
  • It will adopt third-party audits and industry Cybersecurity standards, including NIST frameworks and CISA requirements.
  • Safeguards will cover TikTok and related apps such as CapCut and Lemon8, serving over 200 million American users and 7.5 million businesses.

On Jan. 23, 2026, TikTok announced that it formed TikTok USDS Joint Venture LLC to continue operating in the United States and comply with a presidential executive order, with ByteDance selling a majority stake while keeping 19.9%.

- Advertisement -

The company said the deal was created to meet the requirements of the September 2025 order and related U.S. rules; the announcement is available here.

The company described the new structure as a majority American–owned joint venture that will run under safeguards. _”The majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,”_ the statement said.

U.S. user data will be stored in a secure U.S. cloud environment provided by Oracle, and the recommendation algorithm will be retrained and secured within that infrastructure. The joint venture plans independent cybersecurity and privacy controls, subject to audits and third-party certification.

TikTok added that the program will follow major standards:

- Advertisement -

“The program will adhere to major industry standards, including the National Institute of Standards and Technology (NIST) CSF and 800-53 and ISO 27001, as well as the Cybersecurity and Infrastructure Security Agency (CISA) Security Requirements for Restricted Transactions,” – the company said.

The safeguards will apply to related apps and sites in the U.S., including CapCut and Lemon8. The platform reported it serves over 200 million Americans and 7.5 million businesses.

The move follows legislation from April 2024 that required U.S. availability under American ownership and a federal ban that briefly took effect about a year ago. Under the September 2025 executive order, enforcement was paused for 120 days to allow the divestiture to proceed, enabling completion by Jan. 23, 2026.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Microsoft: Firms Use AI Buttons to Poison Chatbot Memories

A disturbing new digital manipulation tactic has been uncovered by Microsoft security researchers, who...

Aave Lab Offers Revenue, New Focus to DAO’s End Feud

Aave Labs has proposed a new framework directing all revenue from Aave-branded products to...

Soldier used military secrets for $150K crypto bets.

An Israeli reserve soldier and a civilian accomplice face charges for allegedly using military...

BitGo, 21Shares Expand ETF Staking & Custody Partnership

BitGo and 21Shares have expanded their partnership to provide custody, trading, and staking services...

North Korean Hackers Use Google’s Gemini AI for Cyber Recon

Google's threat intelligence team observed the North Korean hacking group UNC2970 using the generative...

Must Read

How Cryptocurrency Works For Beginners?

Welcome to the world of cryptocurrency! If you're new to this exciting and rapidly evolving landscape, you might feel like Alice in Wonderland, exploring...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!