Under the agreement, TikTok’s US operations will be run by a newly formed entity controlled by a majority-American board.
The business, known as TikTok USDS Joint Venture LLC, is backed primarily by US investors and overseen by a seven-member board of directors. TikTok chief executive Shou Zi Chew will sit on the board, while parent company ByteDance will retain a 19.9% minority stake.
A key part of the deal involves TikTok’s content recommendation algorithm, which decides what users see on their “For You” feed. The algorithm has been licensed to US technology firm Oracle, which is led by Trump ally Larry Ellison.
Oracle already manages TikTok’s US user data under a previous security arrangement known as Project Texas. Under the new structure, Oracle’s role will expand to include additional oversight of the app’s operations, including retraining and updating the recommendation algorithm using US user data.
TikTok says both its algorithm and US user information will be safeguarded within “Oracle’s secure US cloud environment.”
