TikTok to Launch U.S.-Specific App with Separate Algorithm and Data

In a significant move, TikTok is preparing to introduce a dedicated application for users in the United States. This upcoming app will utilize an independent algorithm and data system distinct from the global version, potentially paving the way for a sale urged by U.S. authorities.

Over the past few months, TikTok's team has been operating under strict deadlines to develop this U.S.-specific application. This involves transferring and duplicating the codebase of the existing app, including its AI models, algorithms, features, and user data, as reported by sources familiar with the situation.

The initiative, internally referred to as 'M2', is set to be completed by September. This could mark a significant technological separation between TikTok's operations in the U.S. and its international business. The planned changes are expected to influence how approximately 170 million U.S. users engage with content globally and how creators outside the U.S. monetize their presence on the platform.

The new app is designed to function autonomously, akin to Douyin, which is TikTok's version for users in mainland China. Users residing outside the U.S. will not find this American version available in their app stores, as the app is intended for U.S. users only.

Although current content on TikTok is likely to migrate to the new app, it remains uncertain how much new content from the global platform will be incorporated into the U.S. version. The app is expected to rely solely on data from U.S. users to refine its recommendation algorithms, creating a content recommendation system that prioritizes U.S.-generated content.

This strategic separation has been in progress for several months, with ByteDance executives exploring various plans to avert a potential ban of the app in the United States, following bipartisan legislation focused on data security concerns.

The future of TikTok, which is used by nearly half of the American population, has been in limbo since the passage of a 2024 law mandating ByteDance to divest its U.S. operations by January 19. U.S. officials have expressed concerns that TikTok's ownership by ByteDance could compromise user data security and enable influence operations by the Chinese government.

In response to these concerns, TikTok has begun relocating non-U.S. user data from American data centers managed by Oracle, ensuring that only U.S. user data is retained on domestic servers. This step is part of a broader effort to delineate U.S. and international operations.

The company has also been working to separate its core algorithm's codebase since the previous year, a development first reported by news outlets. Once the separation is finalized, the ongoing management and technological development of the U.S. version will be conducted independently from TikTok's global team, although some ByteDance staff may continue to provide support in a limited capacity.

There are concerns within the company regarding the long-term efficacy of the U.S. algorithm compared to the current version, which benefits from ByteDance's extensive global engineering resources and expertise.

This initiative comes amidst mounting political pressure on ByteDance to divest its U.S. operations. A potential deal to create a U.S.-based company to manage TikTok's American operations was recently paused after Chinese authorities indicated they would not approve it, particularly in light of recent trade negotiations that have included discussions of tariffs on Chinese goods.

If a sale occurs, the new app is anticipated to be managed by a joint venture between an American investor consortium and ByteDance, which would retain a minority share. Key players in this consortium include existing ByteDance shareholders such as Susquehanna International Group, General Atlantic, and KKR, alongside new investors like Blackstone and Andreessen Horowitz. Oracle is also expected to have a stake in the venture.

However, it remains uncertain whether the Chinese government will approve plans to replicate the algorithm or facilitate the sale of TikTok's U.S. operations. Previous negotiations have seen Chinese authorities express significant reluctance to permit the export of TikTok's recommendation algorithm, regarded as one of ByteDance's most valuable assets. In 2020, the Chinese government updated its export control regulations to include recommendation algorithms, effectively granting it oversight over any potential transfers.

During past discussions, TikTok's management expressed concerns that separating its U.S. operations would be detrimental to both user experience and the app's global ecosystem. Currently, talks regarding TikTok's future are intertwined with broader trade negotiations between the U.S. and China concerning tariffs.