TikTok has announced the formation of a new joint venture called TikTok USDS Joint Venture LLC to manage its U.S. operations. CEO Shou Zi Chew informed staff that the venture will primarily be backed by American investors, including Oracle, Silver Lake, and Abu Dhabi-based MGX, each holding a 15% stake. The remaining shares will be divided between existing ByteDance investors and ByteDance itself, which retains nearly 20%. This move comes in response to U.S. national security concerns that required ByteDance to divest its U.S. operations or face a ban. The joint venture is designed to ensure American data protection and security. It will have a seven-member board predominantly composed of American members and will focus on safeguarding U.S. user data, content moderation, and maintaining the integrity of its recommendation algorithm. Oracle will act as the "trusted security partner," overseeing compliance with national security requirements and hosting sensitive data in its U.S.-based cloud facilities. A key part of the agreement includes retraining TikTok's algorithm using U.S. user data to prevent external influence on content feeds. The deal's closing date is set for January 22, following a temporary halt on enforcing national security laws that allowed the divestiture to proceed. The agreement also reflects efforts by both the U.S. and Chinese governments to navigate the complexities of international data privacy and security concerns.