Who’s Behind TikTok in the US? What You Should Know

ByteDance, the China-based company behind TikTok, has quietly reshaped how the app operates in the United States.

Instead of running U.S. operations directly, ByteDance has set up a separate American entity to oversee TikTok’s business inside the country. The idea is straightforward: put more distance between TikTok and its Chinese parent company at a time when U.S. lawmakers remain deeply skeptical about data privacy, national security, and foreign influence.

That pressure has been building for years. Members of Congress from both parties have repeatedly questioned whether the Chinese government could gain access to data from American TikTok users or exert influence over the app’s recommendation algorithm. Those concerns came to a head in 2024, when lawmakers passed legislation giving ByteDance a choice: separate TikTok’s U.S. business or risk a nationwide ban.

How TikTok’s U.S. ownership now works

Under the new structure, TikTok’s U.S. operations sit inside a company called TikTok USDS Joint Venture LLC. Most of the ownership—about 80%—is held by non-Chinese investors. ByteDance keeps a 19.9% stake, small enough to stay below the level that would give it formal control.

That doesn’t mean ByteDance has disappeared entirely. The U.S. entity still licenses TikTok’s recommendation algorithm from the parent company. Day-to-day responsibilities, however, now fall to the American operation. That includes

Content moderation
Data protection
Software oversight
Controls around how the algorithm is updated and secured.

Supporters of the arrangement say it creates meaningful U.S. oversight of TikTok’s most sensitive systems. Critics, meanwhile, argue the structure may not go far enough. Whether the separation truly limits ByteDance’s influence is something regulators are likely to keep watching closely.

Whether that separation is sufficient remains a point of debate in Washington.

The managing investor group

The largest influence over the U.S. TikTok entity comes from a managing investor group led by Oracle, Silver Lake, and MGX. Each firm holds a 15% stake, together accounting for 45% of the U.S. business. These firms are expected to play a central role in governance, security oversight, and strategic direction.

Here’s what to know about each.

Oracle

Oracle is one of the world’s largest enterprise software and cloud computing companies and already plays a critical role in TikTok’s U.S. infrastructure. The company previously bid to acquire TikTok during earlier forced-sale negotiations and has long provided cloud services that store U.S. TikTok user data.

Under the new deal, Oracle acts as TikTok’s primary security partner. Its responsibilities include:

Hosting and managing U.S. user data
Auditing TikTok’s compliance with U.S. security requirements
Overseeing updates to TikTok’s recommendation algorithm
Monitoring access controls and software integrity

Oracle’s involvement is meant to reassure regulators that U.S. user data remains under American oversight. Still, the company’s role has drawn attention because of Larry Ellison, Oracle’s co-founder and executive chairman, who is a high-profile billionaire with well-documented ties to former President Donald Trump. Those connections have added a political dimension to Oracle’s central role in TikTok’s future.

MGX

MGX is an AI-focused investment firm based in the United Arab Emirates, with a growing footprint across global technology infrastructure. The firm was created by Mubadala, Abu Dhabi’s sovereign wealth fund, and G42, an Emirati artificial intelligence company.

MGX’s investment gives it potential influence over TikTok’s AI strategy, including how the platform evolves its recommendation systems and generative AI tools. The firm has already invested in major AI players such as OpenAI, Anthropic, and Elon Musk’s xAI, positioning it as a key backer in the global AI race.

MGX has also participated in a $100 billion AI data center initiative announced by President Trump — a project in which Oracle is also involved — further linking the two firms. In addition, MGX maintains partnerships with Microsoft and BlackRock, underscoring its deep ties across both U.S. and international tech and finance circles.

Silver Lake

Silver Lake is one of the most influential private equity firms in the U.S., known for large-scale investments in technology companies. Its portfolio includes stakes in Airbnb, Dell Technologies, Twitter (now X), Tesla, and Waymo.

In TikTok’s U.S. entity, Silver Lake’s role is largely financial and strategic. The firm brings capital, governance experience, and long-term planning expertise rather than direct operational control.

Silver Lake also has existing ties to other players involved in the deal. It has worked with MGX in the past, including on the acquisition of a majority stake in Altera, a software and chip company, and has been an investor in G42 since 2021. Those relationships suggest a tightly connected investor network shaping TikTok’s future.

Other notable investors

Beyond the managing group, several additional investors hold smaller stakes in TikTok’s U.S. entity, further diluting ByteDance’s influence:

Dell Family Office—The investment firm of Michael Dell
Vastmere Strategic Investments—affiliated with Susquehanna International Group (SIG), founded by billionaire Jeff Yass
Alpha Wave Partners—A global investment firm with stakes in companies such as SpaceX and Klarna
Virgo LI—Associated with tech investor Yuri Milner, an early backer of Facebook and Twitter
NJJ Capital—The family office of French billionaire Xavier Niel, founder of telecom company Iliad
Revolution—A venture capital firm founded by AOL co-founder Steve Case
Merritt Way—Managed by partners from Dragoneer Investment Group
Via Nova—An affiliate of General Atlantic

Why this structure matters

The new ownership arrangement is designed to convince U.S. regulators that TikTok can operate independently from Chinese influence. Still, questions remain about whether licensing the algorithm from ByteDance—rather than fully owning it—truly eliminates concerns around control and transparency.

As enforcement deadlines approach and political scrutiny intensifies, TikTok’s U.S. ownership structure may determine whether the app survives in its current form—or faces renewed legal and regulatory challenges.