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ByteDance, the Chinese parent company of TikTok, recently Create a separate US entity To operate the application’s operations in the United States. This restructuring is aimed at separation American Tik Tok From its Chinese parent company, to address concerns about data privacy and foreign control.
The move came after years of pressure from lawmakers, who feared the Chinese government might access Americans’ data. In 2024, Congress passed a lawforcing the separation of TikTok’s US operations from ByteDance.
Under the new structure, about 80% of the US TikTok entity is owned by non-Chinese investors, with ByteDance retaining only a 19.9% stake. The newly formed entity, TikTok USDS Joint Venture LLC, licenses TikTok’s recommendation algorithm from ByteDance and independently manages content moderation, overseeing data protection, algorithm security and software controls.
The management investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. They each own 15% of the shares, equivalent to 45% of the business in the United States. Here’s what you should know about them.
Oracle is a leader in cloud computing and databases and partners with top companies, such as OpenAI. Oracle previously attempted to acquire TikTok and already provides the app’s cloud infrastructure and manages its US user data.
Under the new deal, Oracle serves as a security partner, reviewing TikTok’s compliance with US security requirements, managing data storage, and overseeing content recommendation algorithm updates.
It is important to note that Oracle co-founder Larry Ellison, who now serves as the company’s CEO and CTO, is a prominent billionaire with known ties to President Trump.
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MGX is an AI-focused investment firm based in the UAE, investing in semiconductors and data centres. The company was created by Mubadala (Abu Dhabi’s sovereign wealth fund) and G42, an Emirati company specializing in artificial intelligence.
MGX’s stake in US TikTok could give it a strong influence on key decisions shaping TikTok’s AI direction. The company already supports Elon Musk’s xAI, Anthropic, and OpenAI, and has contributed to President Trump’s $100 billion AI data center initiative, in which Oracle is also involved.
It’s also worth noting that MGX has partnerships with Microsoft and BlackRock.
Silver Lake, a leading US private equity firm, has long invested heavily in technology companies, including Airbnb, Twitter, Dell Technologies, Tesla and Waymo. Its role at US TikTok is primarily financial and strategic, providing capital and expertise to help shape the direction of the platform.
It is worth noting that Silver Lake has cooperated with MGX in the past, including during acquisition From a majority stake in software and chip company Altera last year. In addition, Silver Lake has invested in… G42 Since 2021.