On January 23, 2026, ByteDance and a consortium including Oracle, Silver Lake, and the Abu Dhabi state-backed MGX finalized TikTok USDS Joint Venture LLC, reducing ByteDance's stake in TikTok's US operations to 19.9% while Oracle became the venture's security partner storing US user data on its cloud and auditing compliance. However, ByteDance retained a licensing agreement covering TikTok's recommendation algorithm -- the kind of ongoing 'operational relationship' the 2024 Protecting Americans from Foreign Adversary Controlled Applications Act explicitly required be eliminated. National security experts, including former State Department official Michael Sobolik, called the arrangement a 'unilateral surrender to Beijing' that 'allows Beijing to manipulate content and steal Americans' data, even after today's announcement.' Sen. Ed Markey stated the deal 'maintained an operational relationship between ByteDance and TikTok USDS, violating the spirit, if not the letter, of the law' and said the White House had provided 'virtually no details' on whether the algorithm is truly free of Chinese influence, calling for Congressional investigation. Even Rep. John Moolenaar, chair of the House Select Committee on China and a supporter of the underlying law, said after the deal closed that 'questions... need to be answered' about whether China retains algorithmic influence and whether user data is secure.