TikTok Reshapes U.S. Operations: New Joint Venture, Oracle‑Driven Algorithm, and Heightened Security Measures

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TikTok Restructures in North America, Secures Deal too Address Security concerns

Washington D.C. – After a prolonged period of scrutiny and negotiation, TikTok has unveiled a significant restructuring plan for its North American operations. Teh agreement aims to alleviate longstanding national security concerns raised by U.S. lawmakers and regulators, while ensuring the popular video-sharing platform continues to operate within the region. The core of this shift involves the creation of a new entity, TikTok U.S. Data Security (USDS) Joint Venture LLC, which will fundamentally alter the ownership and control structure of the app.

A New ownership Model

The newly formed TikTok USDS Joint Venture LLC marks a departure from the previous arrangement. Under this new model, a majority of the board overseeing the platform will be comprised of American members, effectively shifting control away from its Chinese parent company, ByteDance. ByteDance will retain a minority stake, but its influence on key decisions will be substantially reduced. This move is intended to address concerns about potential data access and influence by the Chinese government.

Seamless Transition for Users

Despite the significant behind-the-scenes changes, the transition is expected to be largely imperceptible for the millions of TikTok users in the United States and Canada.users will not be required to download a new submission or create new accounts. Existing profiles, followers, and content will remain intact under the new legal framework, ensuring continuity of the user experience.

Oracle Takes Control of TikTok’s Algorithm

Perhaps the most critical aspect of the deal revolves around tiktok’s famed “For You” feed. The platform’s highly effective advice algorithm, which has been a key driver of its success, will now be licensed to Oracle, a leading technology company.According to a Reuters report, Oracle will be responsible for training and updating the algorithm using data stored exclusively on servers within the United States. This localization of data and control is intended to further mitigate security risks.

Experts anticipate that this shift may lead

How does the new TikTok U.S. Data Security joint venture with Oracle protect American user data?

TikTok Reshapes U.S. Operations: New Joint Venture, Oracle‑Driven Algorithm, and Heightened Security Measures

The Evolution of Project Texas

For years, TikTok’s operations in the United States have been under intense scrutiny, primarily due to national security concerns surrounding data privacy and potential Chinese government influence. The culmination of these concerns led to “Project Texas,” a thorough plan to restructure TikTok’s U.S. operations. As of early 2026, this project has largely been implemented, resulting in significant changes to how the platform functions within the country.

TikTok U.S. Data Security (TUSD): A New Joint Venture

The core of the restructuring is TikTok U.S.Data Security (TUSD), a wholly-owned U.S. company created to manage all U.S.user data. This isn’t simply a rebranding exercise; it represents a fundamental shift in ownership and control.

* Oracle’s Role: Oracle, the tech giant, is the key partner in this venture. They are responsible for hosting all U.S. user data on Oracle Cloud Infrastructure (OCI) and independently verifying TikTok’s algorithm and source code. This independent verification is crucial for addressing concerns about potential backdoors or malicious code.

* Firewall Implementation: A “firewall” has been implemented to separate U.S. user data from ByteDance, TikTok’s parent company. This firewall, managed by Oracle, prevents unauthorized access to American user information.

* U.S. Leadership: TUSD is governed by a U.S.-based board of directors, further distancing the platform’s decision-making from ByteDance’s influence.

The Oracle-Driven Algorithm: Openness and Oversight

One of the most significant anxieties surrounding TikTok was the algorithm that curates the “For You” page (FYP).Concerns centered on the possibility of the algorithm being manipulated to promote specific narratives or collect excessive user data.

* Independent Verification: Oracle now has the authority to independently audit and verify the TikTok algorithm. This includes reviewing the source code and ensuring it operates as intended, without hidden functionalities.

* Algorithm Transparency: While the exact workings of the algorithm remain proprietary, the increased transparency provided by Oracle’s oversight is a major step forward. Users can now have more confidence that the content they see is based on their preferences, not external influences.

* Real-time Monitoring: Oracle’s systems provide real-time monitoring of the algorithm’s performance, allowing for swift identification and mitigation of any potential issues.

Heightened Security Measures: Protecting User Data

Beyond the joint venture and algorithm oversight, TikTok has implemented a range of additional security measures to protect U.S. user data.

* Data Localization: All U.S. user data is now stored within the United States, on Oracle’s servers. This eliminates concerns about data being transferred to china.

* Encryption Protocols: Enhanced encryption protocols have been implemented to protect data both in transit and at rest.

* Access Controls: Strict access controls are in place, limiting who within TikTok and Oracle can access U.S.user data. Access is granted on a “need-to-know” basis and is subject to regular audits.

* Third-Party Security Audits: TikTok regularly undergoes independent security audits conducted by reputable third-party firms to identify and address vulnerabilities.

Addressing SIM Card Concerns & Data Collection Practices

Recent discussions, as highlighted in online forums (like the one on Zhihu), have raised questions about TikTok’s access to user SIM card information. While the specifics remain debated, it’s crucial to understand TikTok’s data collection practices.

* SIM Card Verification (Limited Scope): TikTok, like many social media platforms, utilizes SIM card verification as one method to prevent fraudulent account creation and bot activity. However, the extent of this practice and its necessity are ongoing points of discussion.

* eSIM Compatibility: The observation that TikTok’s SIM card checks primarily target users with traditional SIM cards (and not eSIMs) in the 86 region (China) is a valid point. This suggests a targeted approach, possibly aimed at verifying the authenticity of accounts originating from that region.

* Data minimization: TikTok has stated its commitment to data minimization, meaning it only collects data that is necessary for providing its services. However, users should always review the platform’s privacy policy to understand what data is being collected and how it is being used.

Impact on Content Creators and Users

These changes have had a noticeable impact on TikTok’s ecosystem.

* Creator Confidence: Many content creators expressed initial concerns about the potential ban. The implementation of Project