2026 TikTok Breakthrough: US, China Agree, American Entity Expands
A newly formed US joint venture running TikTok’s American operations has updated its privacy policy to allow the collection of more detailed location data from users, following the completion of a long awaited deal separating the app’s US business from its Chinese parent company.
The revised policy was published after investors formally closed an agreement on Thursday with ByteDance, the Beijing based owner of TikTok, to take control of the platform’s US operations. Under the new terms, TikTok’s American entity says it may now collect precise location data from users, depending on individual settings. Previously, the app limited itself to approximate location information.
TikTok did not immediately respond to questions about the change. The company says any sensitive personal data will be processed in line with applicable law and that users can disable location sharing through their device settings.
Even before the creation of the joint venture, TikTok gathered location signals based on SIM cards and IP addresses. However, a 2024 version of its privacy policy confirmed that the app did not collect even approximate GPS data from US users running the latest version of the software.
Precise location sharing has not yet been activated in the United States. It is expected to be optional, switched off by default, and enabled only after users explicitly opt in via a prompt. TikTok has not said when the update will roll out to American users.
In other markets, including the UK and Europe, TikTok already collects similar data through its Nearby Feed feature, which highlights local businesses and events.
Expanded AI data permissions
The new US entity is also widening the scope of information it gathers about how users interact with TikTok’s artificial intelligence tools. That includes prompts and questions submitted to AI features, as well as metadata showing when, how, and where AI generated content is created.
The joint venture, officially named TikTok USDS Joint Venture LLC, is led by three managing investors, including cloud computing giant Oracle. Oracle has been investing heavily in AI infrastructure and has taken on substantial debt to fund its expansion.
Oracle is chaired by Larry Ellison, a longtime ally of US President Donald Trump. Trump’s administration played a central role in brokering the TikTok agreement after years of political and legal pressure on the app.
Other managing investors include the US private equity firm Silver Lake and Abu Dhabi state backed investment fund MGX. ByteDance retains a minority stake just under 20 percent.
Years of political tension
The deal brings to an end years of confrontation between Washington and Beijing over TikTok, which began during Trump’s first term in office. At that time, he attempted to ban the app outright, citing national security concerns.
Those efforts escalated in 2024, when the US passed legislation requiring TikTok to be banned by January 2025 unless ByteDance sold its American business to US investors. Trump later delayed enforcement of the law multiple times while negotiations continued.
Lawmakers behind the legislation argued that TikTok posed a risk because the Chinese government could potentially access US user data or influence the app’s powerful recommendation algorithm. ByteDance has repeatedly denied both claims.
Under the new arrangement, Oracle will oversee the retraining and operation of TikTok’s recommendation algorithm using existing American user data. The joint venture says the algorithm will be secured entirely within Oracle’s US based cloud infrastructure.
In a statement, the company said its mandate is “to secure US user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures”.
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Ongoing scrutiny in Washington
Despite the deal, concerns remain on Capitol Hill. Republican Congressman John Moolenaar, who chairs the House Select Committee on China, questioned whether ByteDance’s continued minority stake could still give Beijing influence.
“Does this deal ensure China does not have influence over the algorithm,” he asked. “Can the parties involved assure Americans their data is secure. Those are questions that need to be answered.”
Writing on Truth Social after the agreement was announced, Trump said he was “so happy to have helped in saving TikTok” and thanked Chinese President Xi Jinping for not blocking the deal. He later told reporters he planned to visit China in April, with Xi expected to travel to the US later in the year.
How the deal was structured
According to details reported by Reuters, ByteDance will hold a 19.9 percent stake in the US business. Oracle, Silver Lake and MGX each hold roughly 15 percent and act as managing investors, with executive Adam Presser appointed to lead the venture.
The agreement removes a cloud of uncertainty that has hung over TikTok’s future in the US, where it boasts more than 150 million active users, its largest national audience.
While Trump opposed banning the app in 2024, he had previously signed an executive order during his first term that would have effectively blocked TikTok in the US.
A platform still under the microscope
The TikTok deal comes as several countries, including the UK, debate tougher restrictions on social media use by children, inspired by Australia’s approach to limiting access for under 16s.
For now, the agreement ensures TikTok can continue operating in the US, but the platform’s data practices, ownership structure and political influence are likely to remain under intense scrutiny. The expansion of location and AI related data collection by the new US entity is already a reminder that, even after the sale, TikTok’s evolution will continue to raise difficult questions about privacy, power and trust in the digital age.
