US - TikTok has announced a deal to continue operating in the United States through a newly formed US-based entity,...
TikTok USDS Joint Venture LLC. This entity is majority-American owned with a seven-member board, including TikTok CEO Shou Zi Chew. ByteDance will retain a 19.9% stake. The core recommendation algorithm for the For You feed will be licensed to Oracle, which already handles US user data under Project Texas. Oracle will retrain and update the algorithm using US data, with both data and the algorithm kept in Oracle’s secure US cloud environment.
To minimize disruption, users are unlikely to need to download a new app. The US is TikTok’s largest market, with about 200 million users, and the company faces competition from Instagram’s Reels. Experts warn that significant changes to TikTok’s experience could deter users and advertisers, so the goal appears to be business-as-usual operations with some behind-the-scenes adjustments.
US users who continue to use TikTok after January 22 must agree to new terms under the US entity and accept limitations on generative AI, including potential inaccuracies or harmful outputs. The updated terms specify that the US entity does not endorse content and that the platform’s contracts are now with the TikTok USDS Joint Venture.
Exactly what changes users will notice remains unclear. The algorithm will be retrained on US data, which could subtly alter personalization and content recommendations. Analysts expect any changes to be gradual rather than dramatic. The use of a licensed US-based version of the algorithm may affect data access, update frequency, and integration with TikTok’s global systems, potentially impacting the For You feed and moderation. ByteDance will still need to adjust data separation and oversight to avoid degrading performance.
TikTok argues the joint venture will enable a more globally compatible experience for US users and creators, preserving global reach. CapCut, Lemon8, and other ByteDance apps accessed in the US are also covered by safeguards. The precise user-facing changes are still to be determined, and TikTok has not provided a detailed timeline on what will shift in the American user experience. (BBC)
