TikTok USDS Joint Venture Puts U.S. User Data in Oracle Cloud
A new American‑majority structure locks U.S. activity, algorithms, and apps like CapCut and Lemon8 behind added safeguards.
Summary
- TikTok has created a new majority American-owned TikTok USDS Joint Venture LLC to keep its U.S. operations alive under strict national security safeguards
- The joint venture locks U.S. user data and TikTok’s recommendation algorithm into Oracle’s U.S. cloud while giving an American-majority board control over trust, safety, and moderation
- ByteDance steps back to a minority stake as heavyweight investors like Silver Lake, Oracle, and Abu Dhabi’s MGX step in, shaping the next phase of TikTok’s presence in the U.S. market
TikTok has finally played its long game in Washington, standing up a majority American-owned TikTok USDS Joint Venture LLC to defuse years of pressure over Chinese ownership and a looming U.S. ban. Built on the existing TikTok U.S. Data Security organization, the new structure is designed to let more than 200 million American users and millions of businesses keep scrolling, creating, and selling while satisfying national security demands.
The joint venture ring-fences U.S. user data inside Oracle’s domestic cloud, wraps the recommendation algorithm in new controls, and layers in software assurance and code review routines overseen with Oracle as a trusted security partner. A seven-member, majority American board that includes TikTok CEO Shou Chew and MGX’s David Scott now governs the entity, while Adam Presser steps in as CEO and Will Farrell as Chief Security Officer. Ownership tilts decisively away from Beijing: Silver Lake, Oracle, and MGX each take 15 percent, a wider investor consortium fills out the cap table, and ByteDance is pushed down to 19.9 percent. The same safeguards extend beyond TikTok to CapCut, Lemon8, and a wider app portfolio, signaling that this is not just a firewall for one platform but an infrastructure bet on how global social media can survive in a fragmented, security-first internet era.
