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By Krystal Hu
NEW YORK (Tech Bytes Lab) - TikTok is getting ready to introduce a separate application for U.S. users, which is anticipated to function using a distinct algorithm and data system compared to its worldwide app, setting the stage for a possible sale initiated by former U.S. President Donald Trump, as per individuals who are aware of the situation.
In recent months, TikTok staff have been operating under strict time constraints to develop a new, U.S.-focused version of the app by moving and replicating the application's code — including AI models, algorithms, features, and user data — from the global platform, according to current company employees who spoke with Tech Bytes Lab and asked to remain anonymous when discussing internal issues.
The action might pave the way for settling years of discussion about whether the company would disclose what is seen as the most valuable asset of the ByteDance-operated short video-sharing app—the recommendation algorithm that drives the Chinese-owned platform, which has been a focal point in the U.S.-China technological rivalry.
ByteDance and TikTok did not provide a statement.
The project, referred to internally as "M2," has a September deadline and may mark the largest technical separation between TikTok's U.S. activities and its global operations. This shift is anticipated to affect how 170 million U.S. users view international content and how creators outside the U.S. generate revenue on the platform.
The newly launched U.S.-only application is intended to operate on its own, much like Douyin — the version of TikTok that is only available in mainland China. According to sources, users located outside the United States will not be able to find the American edition in their app store.
Technical specifications of the new U.S. application are revealed here for the first time. The Information was the first to report on the anticipated release of the U.S. TikTok app.
Although existing content is anticipated to move to the new app, it is still uncertain how much new content from global TikTok apps will be included in the U.S. version. The new app is expected to rely solely on data from U.S. users to develop its recommendation algorithms, increasing its separation from TikTok's worldwide systems, according to sources. Consequently, most users will receive content created within the United States.
SEPARATION ANXIETY
The effort to separate TikTok's U.S. application from its worldwide platform has been ongoing for several months, as executives at ByteDance developed multiple strategies to avoid the app being banned in the United States, a requirement imposed by new laws addressing data security issues.
The app that is used by almost half of all Americans has been uncertain since a 2024 law, which received strong bipartisan backing, mandated ByteDance to sell TikTok by January 19.
U.S. officials have claimed that TikTok's ownership by ByteDance ties it to the Chinese government, suggesting Beijing might utilize the app for influence campaigns targeting the U.S. and to gather information on American users.
Following the initial deadline and a short period of "going dark" in January, TikTok started transferring non-U.S. user data away from American data centers managed by Oracle, ensuring that only data from U.S. users stayed on servers located in the United States, according to sources. This move helped facilitate the separation of U.S. and international operations.
The company has also been working on isolating the code for its main algorithm since last year, a step initially mentioned by Tech Bytes Lab and later refuted by the company.
After the division is finalized, the core technology and continued development will be handled independently from the global TikTok team, although some ByteDance employees might still provide support to TikTok U.S. through an outsourced arrangement, according to one of the sources.
This has sparked internal worries about whether the algorithm used in the U.S. will continue to be as effective over time as it is now, given TikTok's ability to utilize ByteDance's worldwide engineering skills and product knowledge.
The initiative arises as ByteDance encounters ongoing political challenges in Washington to sell its U.S. operations. A plan was being developed this spring to separate TikTok's U.S. activities into a new American company, but it was paused after China stated it would not support the deal following Trump's declaration of significant tariffs on Chinese products.
If a sale is completed, the new application is anticipated to be owned by a joint venture established by an American investor group and ByteDance, which will hold a minority ownership interest.
The group, which has become the leading candidate, consists of ByteDance's existing investors including Susquehanna International Group (SIG), General Atlantic, KKR, along with new backers like Blackstone and Andreessen Horowitz, as Tech Bytes Lab previously reported. Oracle is also expected to acquire a share.
Nevertheless, it is still uncertain if Beijing has given approval for the plan to duplicate the algorithm or to sell TikTok's U.S. operations.
In earlier discussions, Chinese officials showed significant resistance to permitting the export of TikTok's recommendation algorithm, which is considered a crucial asset of ByteDance and a major factor in its worldwide success.
In 2020, during the Trump administration's initial efforts to sell TikTok's U.S. operations, China revised its export control regulations to include technologies like recommendation algorithms, thereby granting the government influence over any such transfer.
At that time, TikTok's leadership refused to separate its U.S. operations, as it was seen as harmful to users and the worldwide network, according to individuals who are aware of the choice.
Currently, discussions regarding TikTok's future are also included in President Trump's larger trade talks with China concerning tariffs, according to sources.
Last week, Trump mentioned that he plans to restart discussions with China regarding the TikTok agreement. Although he expressed uncertainty about Beijing's acceptance, Trump stated, "I believe the deal is beneficial for China and it's also beneficial for us."
(Reported by Krystal Hu in New York; additional reporting by Dawn Chmielewski in Los Angeles; edited by Kenneth Li and Nick Zieminski)
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