TikTok Algorithm to Be Retrained on US Data Under New American Ownership Deal

TikTok announced Thursday the successful completion of a transformative ownership deal that creates a majority American-owned entity, allowing the platform to sidestep a federal ban and continue operating in the United States. The agreement marks the resolution of a five-year regulatory battle that threatened the app’s American future.
The finalized ownership structure dramatically reduces ByteDance’s control to 19.9%, while American investors collectively hold 80.1% of the new US-based company. The American ownership consortium includes three equal partners at 15% each: Oracle, the enterprise technology giant; Silver Lake, a prominent private equity firm specializing in technology investments; and MGX, an investment fund from Abu Dhabi. Michael Dell’s investment firm also contributes to the American ownership group.
This settlement resolves tensions created by 2024 congressional legislation that required TikTok to secure American ownership or face removal from US app stores and hosting services. The law reflected widespread concern among policymakers about national security vulnerabilities, including potential data harvesting and content manipulation by foreign actors. The Supreme Court upheld the legislation in January 2025, after which President Trump used executive discretion to delay enforcement during active negotiations.
Adam Presser, who previously led global operations and trust and safety initiatives for TikTok, will assume the role of CEO for the American entity. The company will be overseen by a seven-person board of directors, intentionally designed with an American majority and populated by experts in cybersecurity and national security. Shou Chew, the current global CEO of TikTok, will serve on the board to ensure strategic continuity.
A central component of the deal involves comprehensive safeguards for American users, including advanced data protection systems, algorithm security measures, enhanced content moderation, and software integrity protocols. Most significantly, the platform’s content recommendation algorithm will be completely retrained using only data from US users, with continuous testing and refinement to ensure it operates independently of foreign systems. This addresses core concerns about foreign influence over what content Americans see on the platform. Both US and Chinese government officials have approved the arrangement, with President Trump publicly thanking Chinese President Xi Jinping for facilitating the agreement, which brings certainty to millions of American users and content creators.