On January 23rd, Beijing time, TikTok released a statement announcing the official establishment of TikTok USDS Joint Venture LLC. This new entity is tasked with overseeing data protection, algorithm security, content moderation, and software assurance specifically for TikTok's operations within the United States. ByteDance, the parent company of TikTok, will maintain ownership of the intellectual property rights associated with TikTok's algorithm and will grant a license for its utilization to the joint venture. Meanwhile, TikTok's U.S. subsidiary will take charge of commercial endeavors such as e-commerce, advertising, marketing, and ensuring the seamless interconnection of TikTok's global product offerings.

The joint venture is backed by a consortium of stakeholders, including ByteDance, Oracle, Silver Lake Capital, and MGX. Among these, ByteDance retains a 19.9% stake, thereby securing its position as the largest single shareholder. The joint venture's board of directors is composed of seven members, with TikTok CEO Shou Zi Chew being one of them.