TikTok has finalized a landmark agreement ensuring its continued operation across the United States, though its substantial user base of 200 million Americans should anticipate notable platform modifications. The resolution establishes a novel corporate framework—TikTok USDS Joint Venture LLC—governed by a seven-member board with predominant American representation and investment. While Chinese parent company ByteDance maintains a 19.9% stake, TikTok CEO Shou Zi Chew retains board membership.
The platform’s pivotal content recommendation algorithm, which curates personalized For You feeds, will be licensed to Oracle Corporation. Under the leadership of Larry Ellison—a noted ally of former President Trump—Oracle will assume enhanced responsibilities including retraining and updating TikTok’s algorithm utilizing exclusively US user data. This development extends Oracle’s existing oversight of American user data through the security-focused initiative known as Project Texas.
TikTok emphasizes that both algorithmic operations and user data will reside securely within Oracle’s US cloud infrastructure. Industry analysts suggest the platform will strive to minimize user disruption, making a mandatory migration to a new application improbable given the competitive pressure from Meta’s Instagram Reels and similar short-form video services.
Concurrent with the agreement’s finalization, TikTok implemented updated Terms of Service for American users. Key revisions include stricter age verification mandating that users under thirteen utilize a restricted “Under 13 Experience,” explicit disclaimers that the new US entity does not endorse platform content, and heightened user acknowledgments regarding generative AI limitations and associated risks.
Although specific interface changes remain unspecified, the algorithmic retraining using domestic data has sparked concerns regarding potential alterations to content personalization. Experts including Dr. Kokil Jaidka of the National University of Singapore anticipate modifications will likely manifest subtly through gradually weakened personalization rather than abrupt transformations. Core features including short videos, influencer culture, and livestream shopping are expected to persist unchanged.
The arrangement also secures the operational status of other ByteDance applications in the US market, including CapCut and Lemon8, which previously faced uncertainty during brief ban enforcement in January 2025. These applications will now fall under the protective safeguards established by the new joint venture structure.