TikTok Secures Future in US: What Users Can Expect
TikTok has reached a deal that allows it to continue operating in the United States, providing clarity for its 200 million American users while introducing several changes.
What is the US TikTok deal?
The agreement establishes a separate US-based entity, TikTok USDS Joint Venture LLC, majority-owned and operated by American investors. The venture is managed by a seven-member board that includes TikTok CEO Shou Zi Chew. ByteDance, TikTok’s Chinese parent company, will retain a 19.9% stake.
As part of the deal, TikTok’s recommendation algorithm—responsible for the popular For You feed—has been licensed to Oracle. The tech giant, led by Trump ally Larry Ellison, already manages TikTok US user data under Project Texas. Oracle will now oversee additional aspects of the platform, including retraining and updating the algorithm using US user data. TikTok assures that both the algorithm and user data will remain secure in “Oracle’s secure US cloud environment.”
Despite the deal’s completion, lawmakers have expressed concerns. Senator Ron Wyden warned that “Americans won't be any better off if a TikTok sale ends up with the company in the hands of Trump cronies backed by foreign funding.” Meanwhile, Senator Ed Markey has called for congressional investigation citing a “lack of transparency.”
Will users need a new app?
TikTok aims to minimize disruption. Experts say a mass migration to a new app is unlikely, as it could alienate both users and advertisers. Jasmine Enberg, co-CEO of Scalable, said, “While the need for users to download a new app seems unlikely, brand partners will want to know that their TikTok strategies won't be disrupted.”
Changes to US TikTok terms and conditions
As of January 22, US users agree to terms with TikTok USDS Joint Venture. Updates include restrictions for children under 13, a clarification that the new entity “does not endorse any content,” and acknowledgment of generative AI limitations, including potential inaccuracies or inappropriate content.
Algorithm updates and content changes
TikTok’s recommendation algorithm will be retrained on US user data, which could subtly change the content people see. Enberg notes this may impact what users see or create, potentially “leading to a different look and feel” for American users. Dr. Kokil Jaidka from the National University of Singapore said, “The app is unlikely to suddenly feel different for most, but changes are plausible.” Matt Navarra emphasized that short-term tweaks may occur but “you’re still using the same app, the same account and broadly the same recommendation engine.”
Global content and related apps
The US version of TikTok may see a slight shift toward domestic content due to data separation, but the platform will remain globally connected. TikTok confirmed that the joint venture’s safeguards will also extend to ByteDance-owned apps CapCut and Lemon8, ensuring their continued availability in the US.
Overall, the TikTok US deal aims to balance safety, local oversight, and continuity, keeping the platform familiar while gradually fine-tuning the user experience.