TikTok U.S. Venture Takes Control of Data and Algorithm Security

TikTok has placed U.S. user-data protection and recommendation-algorithm security under a new majority-American-owned venture backed by Oracle, Silver Lake and MGX.

TikTok USDS Joint Venture LLC was established Jan. 23, 2026, under the terms of President Donald Trump’s Sept. 25, 2025, executive order. The venture is responsible for U.S. user-data protection, algorithm security, content moderation and software assurance.

Oracle, Silver Lake and MGX each hold a 15% stake in the venture. ByteDance, TikTok’s parent company, retains a 19.9% interest.

The venture’s seven-member board has a majority of American directors. U.S. user data and TikTok’s recommendation algorithm will be secured in Oracle’s U.S. cloud environment.

The joint venture will retrain, test and update the content recommendation algorithm using U.S. user data. Its safeguards also cover CapCut, Lemon8 and other apps and websites operated in the United States.

The venture is responsible for U.S. content moderation and trust-and-safety safeguards. Those responsibilities separate the protection of U.S. data and platform safety from the broader operations of TikTok’s global business.

Adam Presser was appointed chief executive officer, while Will Farrell was named chief security officer. Their appointments establish the venture’s leadership as it takes responsibility for the covered security and safety functions.

The arrangement follows U.S. legislation requiring ByteDance to divest TikTok or face restrictions on the application because of national-security concerns. The new structure is described as independent and majority American-owned, while ByteDance remains an investor.

The venture’s announcement did not disclose a purchase price or valuation.