Who Owns TikTok in the U.S.? Inside the New Investor-Led Structure
ByteDance, the Chinese parent company of TikTok, has created a new U.S.-based entity to oversee the app’s American operations, marking a major shift in how TikTok operates in the United States. The restructuring is designed to distance the U.S. version of the platform from Chinese ownership amid long-standing concerns about data privacy, national security, and foreign influence.
The change follows years of scrutiny from U.S. lawmakers who warned that TikTok could allow the Chinese government access to American user data. In response, legislation passed in 2024 required TikTok’s U.S. operations to be separated from ByteDance, prompting the company to reorganize its ownership and governance structure.
Under the new arrangement, the U.S. business is operated by an entity known as TikTok USDS Joint Venture LLC. Roughly 80% of the company is owned by non-Chinese investors, while ByteDance retains a minority stake of 19.9%. Although ByteDance continues to license TikTok’s recommendation algorithm to the U.S. entity, the American organization independently manages content moderation, data protection, software controls, and algorithm security.
The controlling investor group holds a combined 45% stake and includes Oracle, Silver Lake, and MGX, with each firm owning approximately 15% of the U.S. business.
Oracle plays a central operational role in the new structure. The company already provides cloud infrastructure for TikTok and manages U.S. user data. Under the agreement, Oracle acts as the platform’s security partner, overseeing data storage, auditing compliance with U.S. security standards, and supervising changes to the recommendation algorithm. Oracle co-founder Larry Ellison, now executive chairman and chief technology officer, remains a prominent figure within the company and a well-known billionaire with high-level political connections.
MGX is an artificial intelligence–focused investment firm based in the United Arab Emirates, created through a partnership between Mubadala, Abu Dhabi’s sovereign wealth fund, and G42, an Emirati AI company. The firm invests heavily in semiconductors, data centers, and advanced AI systems. Its involvement in TikTok’s U.S. operations positions it to influence the platform’s future use of artificial intelligence. MGX has invested in major AI players, including xAI, Anthropic, and OpenAI, and participates in large-scale AI infrastructure initiatives alongside Oracle. The firm also maintains partnerships with Microsoft and BlackRock.
Silver Lake, a major U.S. private equity firm, brings financial backing and strategic expertise to the joint venture. The firm has a long history of investing in major technology companies, including Airbnb, Dell Technologies, Tesla, and Waymo. Its role in TikTok’s U.S. business centers on long-term growth, governance, and operational strategy. Silver Lake has previously collaborated with MGX on large technology acquisitions and has invested in G42 for several years.
Beyond the primary investor group, a diverse set of additional investors holds smaller stakes in the U.S. entity. These include the Dell Family Office, associated with Michael Dell; Vastmere Strategic Investments, linked to Susquehanna International Group; Alpha Wave Partners, known for investments in companies such as SpaceX and Klarna; Virgo LI, connected to technology investor Yuri Milner; NJJ Capital, the family office of French entrepreneur Xavier Niel; Revolution, the venture firm founded by Steve Case; Merritt Way, managed by partners of Dragoneer Investment Group; and Via Nova, an affiliate of General Atlantic.
Together, the new ownership structure reflects an effort to keep TikTok operational in the United States while addressing regulatory concerns by placing control largely in the hands of American and allied international investors.