TikTok has now formally confirmed that it’s established a brand new three way partnership with a gaggle of U.S. companions to satisfy the necessities of the Defending Individuals from Overseas Adversary Managed Functions Act within the U.S., which can be certain that the platform stays in operation for U.S. customers.
As per TikTok:
“Right this moment, TikTok USDS Joint Enterprise LLC has been established in compliance with the Govt Order signed by President Trump on September 25, 2025, now enabling greater than 200 million Individuals and seven.5 million companies to proceed to find, create, and thrive as a part of TikTok’s vibrant international group and expertise. The bulk American owned Joint Enterprise will function underneath outlined safeguards that shield nationwide safety via complete information protections, algorithm safety, content material moderation, and software program assurances for U.S. customers.”
TikTok says that the USDS Joint Enterprise’s mandate is to safe U.S. person information, apps and the algorithm via complete information privateness and cybersecurity measures.
“It should safeguard the U.S. content material ecosystem via strong belief and security insurance policies and content material moderation whereas guaranteeing steady accountability via transparency reporting and third-party certifications.”
The enterprise will likely be overseen by a seven particular person panel, together with TikTok CEO Shou Zi Chew, Egon Durban of Silver Lake, and Kenneth Glueck from Oracle.
The brand new enterprise will even cowl CapCut, and Lemon8, in addition to “a portfolio of different apps and web sites within the U.S.”
Additionally, TikTok’s algorithm will likely be partially re-written:
“The Joint Enterprise will retrain, check, and replace the content material advice algorithm on U.S. person information. The content material advice algorithm will likely be secured in Oracle’s U.S. cloud surroundings.”
That might imply a change, although it depends upon precisely how a lot the group is required to alter, and the way a lot it might probably share with TikTok’s Chinese language head workplace.
TikTok additionally says that U.S. customers is not going to must obtain a brand new app, as had been indicated in some studies.
So, after 5 years of backwards and forwards, TikTok has been saved, with TikTok, and father or mother firm ByteDance, sustaining a major stake within the app.
TikTok had until tomorrow (January twenty third) to satisfy the necessities of the invoice, primarily based on the most recent extension of its deadline granted by U.S. President Donald Trump. The Oracle-led three way partnership was pitched to TikTok execs again in September, and it’s taken 4 months to hash out the ultimate particulars, and guarantee it ticks all of the containers.
Semafor had reported earlier within the day {that a} deal was imminent, with U.S. and Chinese language negotiators lastly coming to phrases, and signing off on the particulars.
As additional reported by TechCrunch:
“In keeping with a memo seen by TechCrunch, the investor group consists of Oracle, non-public fairness agency Silver Lake, and funding agency MGX. Collectively, they’ll maintain 45% of the U.S. operation, with ByteDance conserving practically a 20% stake.”
The brand new TikTok entity will primarily function a separate variation of the app within the U.S., although as famous, it is not going to require customers to obtain a brand new app.
So excellent news for TikTok customers and creators, whereas the corporate has additionally had a win on one other international entrance.
TikTok can also be celebrating a win in Canada, with a federal courtroom ruling that the Canadian authorities’s makes an attempt to drive the corporate out of the native market as a result of nationwide safety considerations aren’t legitimate.
In November 2024, the Canadian authorities issued an order for TikTok to dissolve its Canadian enterprise, citing nationwide safety dangers. On the time, then Canadian Innovation Minister Francois-Philippe Champagne stated that the order was primarily based on “nationwide safety dangers” focusing particularly on the operations “carried out in Canada by TikTok at their workplaces.”
Canadian authorities supplied no additional clarification, however mainly, there have been considerations that one thing taking place within the native TikTok buildings was trigger for concern.
To be clear, the order doesn’t relate to the app being obtainable within the area, TikTok would nonetheless be accessible in Canada both manner, however the ruling would have compelled TikTok’s native enterprise to close down, and stop operations within the nation.
Which might have impacted tons of of native TikTok staff, however now, they will relaxation straightforward, with the courtroom siding with TikTok in opposing the ban.
Presumably additionally worthy of be aware is that the Canadian authorities additionally signed a brand new bilateral settlement with China this week.
So whereas there are some lingering considerations concerning the app, and the specter of international surveillance and manipulation stays important, primarily based on varied cybersecurity advisories, TikTok will stay lively and obtainable in most areas.
Is {that a} good factor? Effectively, it’s for creators, and for the numerous tens of millions of people that scroll via the app every single day. However by way of international interference, it looks as if there’s nonetheless some ingredient of concern there, which can by no means come to something, or might change into a a lot larger deal, probably looking back.
Both manner, TikTok is saved, as President Trump had promised.
