US Ownership Deal Finalized — New Terms of Service in Effect
USDS Joint Venture with Oracle, Silver Lake, and MGX finalized. Updated Terms grant TikTok worldwide license for ML model development.
What Changed
On January 22, 2026, the TikTok USDS Joint Venture LLC officially closed, transferring operational control of TikTok’s US business to a new American-controlled entity. Oracle (15%), Silver Lake (15%), and Abu Dhabi’s MGX (15%) serve as managing investors, while ByteDance retains a 19.9% minority stake below the divest-or-ban law threshold.
Simultaneously, TikTok introduced sweeping new Terms of Service. The most significant change is a worldwide, irrevocable, royalty-free license granted to TikTok for all user-generated content, explicitly covering “developing new technologies including training, testing, and improving machine learning models and algorithms.”
The updated terms also expanded data collection to include precise GPS-based location data and extended advertising terms to include personalized advertising outside the TikTok app. Users are now responsible for all AI-generated outputs created using TikTok’s tools.
Who's Affected
- All US TikTok users (170+ million) subject to new Terms of Service
- TikTok advertisers and brands running campaigns in the US market
- Content creators and influencers — content now licensed for ML training
- E-commerce sellers on TikTok Shop
- Ad tech partners integrated with TikTok’s advertising platform
Action Steps for Advertisers & Creators
- 1Review the updated Terms of Service in full — understand the ML training license scope and its impact on your content strategy
- 2Audit your TikTok advertising accounts — confirm ad accounts and API integrations function normally under the new entity
- 3Review privacy settings — new terms allow GPS-based precise location collection
- 4Assess off-platform advertising implications — ad personalization now extends beyond the TikTok app
- 5Update your social media policy to reflect the new ownership structure and data handling practices
- 6Consider content licensing implications — evaluate whether the irrevocable ML training license is acceptable for your brand assets
Key Dates
| Date | Milestone |
|---|---|
| Dec 18, 2025 | TikTok announces signed binding agreements for the JV |
| Jan 22, 2026 | Deal officially closes — new Terms of Service take effect |
| Mar 14, 2026 | Trump Administration’s $10 billion fee collection announced |