TikTok is developing a US-specific app that will operate on an independent algorithm and data system, according to sources familiar with the initiative.

This project, internally referred to as “M2,” is expected to be completed by September and could lead to a potential sale of TikTok’s U.S. operations.

The new app will function independently, similar to Douyin, the Chinese version of TikTok.

It will use only US user data to train its recommendation algorithms, focusing primarily on content generated within the US.

Existing content is expected to migrate to the new app, but details on the integration of global content remain unclear.

This effort follows increasing political pressure in Washington regarding data security concerns and ByteDance’s ownership of TikTok.

Discussions regarding TikTok’s future are occurring alongside broader trade negotiations between the US and China.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ TikTok’s algorithm split mirrors historical platform bifurcation patterns

TikTok’s plan to create a separate U.S. app resembles ByteDance’s existing dual-app strategy with TikTok and Douyin, which operate as distinct platforms internationally and in China, respectively1.

This move continues a pattern of regional platform separation seen across the tech industry when companies face regulatory pressure, with ByteDance having already maintained separate content policies between its international and domestic Chinese apps since at least 20192.

The separation of TikTok’s recommendation algorithm, considered the company’s “crown jewel” according to multiple sources, represents a significant technical concession that ByteDance previously resisted during the first Trump administration’s divestiture push3.

This strategic shift demonstrates how ByteDance has evolved from its initial resistance to splitting its technology in 2020 to now accepting algorithm separation as necessary for continued U.S. market access.

The company’s willingness to separate its algorithm contradicts China’s 2020 export control rules specifically designed to prevent the transfer of recommendation technology, highlighting the financial importance of maintaining access to TikTok’s 170 million U.S. users4.

2️⃣ Algorithm localization presents performance and content tradeoffs

TikTok’s U.S.-only algorithm will rely solely on domestic data for training, potentially limiting the system’s effectiveness compared to the global algorithm that benefits from ByteDance’s international engineering expertise and wider data pool5.

Research involving 347 TikTok users found that 30-50% of videos shown are based on the platform’s predictions of user preferences, suggesting that a less sophisticated algorithm could significantly impact the user experience that has made TikTok addictive5.

The platform’s algorithm currently operates as a sophisticated “black box” system that personalizes content based on user interactions, video information, and account settings—a complex system that may be difficult to replicate with limited engineering resources6.

This localization approach raises practical questions about content flow, as TikTok has not clarified how much international content will appear in the U.S. app, potentially limiting American users’ access to global trends and creators6.

Studies show TikTok users spend an average of 50 minutes daily on the platform after 120 days of usage, demonstrating the algorithm’s effectiveness at driving engagement—a key metric that could suffer if the US algorithm doesn’t maintain the same quality5.

3️⃣ TikTok’s structural changes reveal evolving data sovereignty landscape

TikTok’s technical separation comes amid a global trend of increasing data localization requirements, with countries developing distinct approaches to social media regulation that reflect their political and cultural priorities7.

The US and China represent opposite ends of the regulatory spectrum, with the US historically favoring a permissive model prioritizing free speech while China employs strict regulations requiring platforms to actively monitor and censor content8.

TikTok’s data separation strategy began earlier when the company started moving non-US user data out of American data centers run by Oracle, ensuring only U.S. user data remained on servers in the US—a foundational step toward the current technical division4.

The potential sale of TikTok to a consortium including ByteDance shareholders like SIG, General Atlantic, KKR, and new investors such as Blackstone and Andreessen Horowitz demonstrates how data sovereignty concerns are reshaping corporate structures in the social media industry4.

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