TikTok’s US deal settles the politics, not the algorithm creators depend on

TikTok’s US deal has brought six years of legal wrangling to a close, but opened up fresh questions about what the platform’s future looks like for creators and the brands they work with, particularly where its algorithm is concerned.

The deal, closed last week, seeks to address longstanding national security concerns by bringing TikTok’s US operations under a new ownership and governance model, while stopping short of a full separation from its Chinese parent.

Under the new structure, the platform’s US business now sits within a newly established consortium backed primarily by American and allied investors.

The three largest non-Chinese investors – investment firm Silver Lake, Abu Dhabi-based artificial intelligence company MGX and software giant Oracle – each hold a 15 percent stake in the US joint venture. TikTok owner ByteDance has retained a 19.9 percent stake and remains financially and structurally tied to the business.

Announcing the deal in a statement, TikTok said the new structure would allow the platform to continue operating in the US while protecting user data and the integrity of the service.

Lingering uncertainty

Still, how exactly that ownership and governance structure will shape TikTok’s day-to-day operations is yet to be defined, and questions remain about whether the changes will affect who gets seen on the platform.

TikTok has confirmed that its recommendation system will be retrained on US user data under the new structure, a move intended to ringfence the algorithm from foreign influence. What that retraining will mean for reach and performance, however, has not been specified.

That lack of clarity has already fuelled speculation among users. In recent days, a wave of posts encouraged people to “block Oracle,” following complaints about repetitive videos and distorted For You pages.

While there is no evidence linking those experiences to the ownership changes, the reaction reflects broader confusion about how the new company might affect the platform’s mechanics.

Another open question is whether a US-trained algorithm could become less globally interconnected over time.

TikTok’s core selling point has long been its ability to allow content to travel well beyond national audiences. A recommendation engine trained only on American data could, in theory, reshape how content circulates, with implications for creators seeking international reach and brands running global campaigns.

TikTok has pushed back against that interpretation, stressing that the new structure preserves interoperability and global discovery. In its statement, the company said the changes would continue to enable more than 200 million Americans and 7.5 million businesses to participate in TikTok’s global ecosystem.

Closing a door, opening another

TikTok’s US challenges date back to 2020, when the US government first signalled it was considering banning the Chinese-owned social media platform at the urging of then president Donald Trump, who framed the app as a national security risk.

The new deal resolves that immediate standoff, but it does not close the wider debate over how governments should regulate globally scaled platforms, with several jurisdictions now reassessing their relationship with the company.

Last week, a Canadian federal court set aside a government order that would have required TikTok to wind down its business operations in the country, sending the decision back for further review. The ruling temporarily removes the threat of closure while a new national security assessment is carried out.

Elsewhere, TikTok continues to face regulatory pressure. Australia last month banned under-16s from using the app as part of a wider youth social media restriction following concerns about online safety. The European Union is also enforcing sweeping platform rules through the Digital Services Act, the Digital Markets Act and existing data protection law.

For creators and advertisers, the US deal closes one chapter but opens another set of questions. The unresolved issue is whether these changes alter how TikTok is used in practice, forcing a rethink of how brand partnerships and campaigns are structured, particularly if other jurisdictions move in the same direction.

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