Top Headlines

Feeds

TikTok U.S. Joint Venture Updates Policy to Permit Precise GPS and Expanded AI Data Collection

Updated (22 articles)

Joint venture sealed, U.S. investors gain majority control TikTok’s U.S. operations now run under TikTok USDS Joint Venture LLC, a new entity backed by Oracle, Silver Lake and Abu‑Dhabi‑based MGX, each holding roughly 15 % and together owning a majority stake while ByteDance retains a 19.9 % minority share [2][3][5][8][9]. The venture is governed by a seven‑member board dominated by American directors, with Adam Presser appointed CEO and TikTok global chief Shou Zi Chew serving on the board [5][7][9]. This structure satisfies the 2024 U.S. law that threatened a ban unless majority U.S. ownership was achieved [1][6].

Algorithm licensed, retrained on American data, stored in Oracle cloud The deal requires ByteDance to license its recommendation engine to the joint venture, which will retrain the model exclusively on U.S. user data [2][3][5][8]. All U.S. data and the retrained algorithm will reside in Oracle’s secure U.S. cloud, extending the earlier Project Texas safeguards [3][7][8]. Analysts expect only subtle feed changes for most users, though some predict minor shifts in content reach [3][6].

Terms of service revised to cover AI, children and precise location TikTok’s updated U.S. terms now obligate users to label AI‑generated content, introduce an “Under 13 Experience” for younger users, and grant the platform a broad, royalty‑free license to use uploaded material for machine‑learning purposes [2][4]. A new privacy clause permits collection of precise GPS coordinates, but the feature remains disabled by default and requires an explicit opt‑in pop‑up before activation [1]. The policy also expands data gathering to include prompts and metadata from AI interactions, mirroring practices already used in Europe [1].

Lawmakers and political figures weigh in on security and oversight Republican Rep. John Moolenaar and Democratic senators Ron Wyden and Ed Markey have called for congressional scrutiny of the joint‑venture’s safeguards and the influence of investors linked to former President Trump [1][3][6]. Trump publicly praised the agreement and thanked Chinese President Xi for allowing it to proceed [5][8][9]. Despite the safeguards, some officials continue to question whether the arrangement fully eliminates Chinese access to the algorithm or user data [1][6].

Sources (10 articles)

Timeline

Dec 12 2025 – The United States pushes the TikTok ban deadline to Jan 23 2026, giving ByteDance more time to complete a sale under the 2024 law that would otherwise force a ban. The extension reflects ongoing congressional pressure and executive‑order maneuvers to avoid disrupting the platform’s 200 million U.S. users[7].

Dec 15 2025 – Billionaire investor Frank McCourt tells the BBC he is “waiting in limbo” as the deadline approaches, ready to fund a purchase that would strip Chinese technology from TikTok and run the service under his “Project Liberty” consortium[7].

Dec 16 2025 – Former President Donald Trump weighs a fifth extension of the ban deadline, noting that a September executive order already moved the cutoff to Dec 16 and hinting at further extensions if negotiations stall[17][20].

Dec 18 2025 – TikTok’s CEO Shou Zi Chew emails employees confirming that the company has signed binding agreements with Oracle, Silver Lake and MGX to spin off U.S. assets into a new joint venture, slated to close on Jan 22 2026. The memo stresses that “over 170 million Americans will continue discovering TikTok as part of a global community”[13].

Dec 19 2025 – ByteDance finalizes a binding deal that gives the investor consortium (Oracle, Silver Lake, MGX) a 50 % stake, while ByteDance retains 19.9 % and its back‑ers hold 30.1 %. Oracle will license and retrain TikTok’s recommendation algorithm on U.S. data, a move analysts say could “dull TikTok’s cultural edge”[5][6].

Quote: Analyst Matt Navarra warns, “the question is not whether TikTok survives but what version survives.”[5]

Dec 22 2025 – A joint‑venture structure is officially announced, but Rush Doshi (former NSC official) flags that it remains “unclear whether the TikTok algorithm has been transferred, licensed or remains under Beijing’s control,” highlighting lingering national‑security ambiguities[9].

Jan 22 2026 – The TikTok USDS Joint Venture LLC closes, with Adam Presser appointed CEO and a majority‑American seven‑member board. The venture is majority U.S.–owned (50 % investors, 30 % ByteDance affiliates, 19.9 % ByteDance) and operates under “safeguards” for data protection, algorithm security, content moderation and software assurance.

Quote: President Donald Trump posts on Truth Social, “Thank you, Xi Jinping, for helping save TikTok,” crediting the Chinese leader for the deal’s approval[15].

Jan 23 2026 – TikTok publicly finalizes the U.S. joint‑venture deal, updating its Terms of Service to require AI‑generated content labeling and an “Under 13 Experience” for children. The board now includes Shou Zi Chew, Oracle executives, and representatives from Silver Lake and MGX.

Quote: Sen. Ron Wyden (D‑OR) warns the arrangement “does not protect American user privacy” and urges further oversight[2].

Analysts such as Jasmine Enberg and Matt Navarra predict only “subtle, minor shifts” in personalization as the algorithm is retrained on U.S. data[2].

Jan 24 2026 – TikTok’s U.S. joint venture revises its privacy policy to permit collection of precise GPS location (subject to user opt‑in) and expands AI‑interaction data gathering, mirroring practices already used in the UK and Europe. The change follows the investors’ deal and comes amid renewed congressional scrutiny.

Quote: Rep. John Moolenaar (R‑MI), chair of the House Select Committee on China, asks whether the deal “prevents Chinese influence over the algorithm and assures data security,” calling for oversight[1].

Historical context – 2024 – A U.S. law enacted in 2024 threatens to ban TikTok by Jan 2025 unless ByteDance divests majority ownership, prompting the joint‑venture structure that now satisfies the ban‑avoidance requirement[1].

Historical context – 2020 – China’s 2020 export‑control rules give the Chinese government approval rights over any export of algorithms and source code, adding complexity to the ownership and licensing of TikTok’s recommendation engine[9].

Stories about this story (4 stories)

All related articles (22 articles)

External resources (9 links)