- 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%.
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:
“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.
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