Featured Image Credit: Chesnot/Getty Images
Topics: US News, Donald Trump, TikTok, China
Ellie Kemp
A deal has finally been struck to keep TikTok operating in the US, although it's set to bring a major shake-up.
Since the popular short-from video app went dark on January 18 2025, Americans have been worried about its future. Some 136 million people in the US are on TikTok, as per DemandSage, with some making a living off of their short-form content, sponsorships and marketplace TikTok Shop.
It all began when President Donald Trump threatened to ban the popular social media site due to national security concerns.
Wait a second, that sounds awfully familiar; Trump gave the same reasoning for wanting to take over Greenland.
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Anyway, on the TikTok front, it was feared Beijing could use the app to collect data on US users, or influence public opinion on the country.
China denied both of these accusations.
But Trump's administration ended up passing a law that demanded ByteDance, TikTok’s Chinese parent company, sell the platform. Obviously, ByteDance wasn't too keen on that idea, but all parties have now come to some sort of compromise, in the form of new US joint venture.
Whisperings of such a deal were reported last year, but on Thursday (January 22), TikTok finally went official. The company confirmed it has set up a new, US-based joint venture to run TikTok’s American operations, shifting control of user data, content moderation and the recommendation algorithm into a majority American-owned company.
Under the new structure - which complies with the executive order signed by Trump on September 25, 2025 - TikTok’s Chinese parent ByteDance will retain a minority stake of just 19.9 percent.
But the day-to-day running of the app in the US moves to this new entity, which is backed by investors including Larry Ellison's Oracle, US investment firm Silver Lake and Abu Dhabi-based AI investment company, MGX, who together own the majority.
"TikTok USDS Joint Venture LLC is dedicated to the safety and security of millions of Americans who create, discover, and connect with what they love on the apps we operate," the statement said in part.
"Our foundation is a comprehensive data privacy and cybersecurity program we operate under defined safeguards to protect national security and secure US user data, apps and the algorithm.
"We safeguard the US content ecosystem, holding decision-making authority for trust and safety policies and moderation."
It concluded: "USDS Joint Venture helps ensure Americans can continue to express their creativity, discover new hobbies and interests, and build thriving communities and businesses on a global scale."
The new safeguards also apply to CapCut, Lemon8, and other TikTok-owned apps and websites in the US.
As touched on previously, part of the new venture is that the US algorithm will now be controlled by the US board instead of TikTok's global parent company.
The algorithm will be re-trained, tested, and updated using US user data, inside Oracle’s US-based cloud.
So over the coming weeks and months, US users might notice a shift in their daily scrolling experience.
It might not be the same TikTok you've come to know and love - which could potentially drive users away from the site.
Already, social media users have voiced concerns about how changes to the algorithm could affect the type of content they are shown.
Only time will tell!