TikTok is preparing to launch a standalone app for U.S. users that would run on a separate algorithm and data system from the global app, setting the stage for a potential sale brokered by U.S. President Donald Trump, according to people familiar with the matter.
In recent months, TikTok employees have been working under tight deadlines to build a U.S.-specific version, transferring and copying the global app's code base. That includes artificial intelligence models, algorithms, features and user data, several current company employees told Reuters, speaking on condition of anonymity.
The move could resolve years of debate over the sharing of what is considered TikTok's "most valuable asset": its recommendation algorithm. The algorithm has been at the center of a tech showdown between the United States and China. ByteDance and TikTok have not commented on the matter.
The initiative, known internally as “M2,” is due in September and could represent the biggest technical separation between TikTok’s U.S. and global operations yet. The change will affect how TikTok’s 170 million U.S. users consume global content and how non-U.S. creators benefit from the platform.
The new US app is expected to operate independently, similar to Douyin, the version of TikTok that is only available in China. Sources say users outside the US will not be able to find this version in app stores.
While existing content is expected to be ported over to the new app, it's not yet clear whether and to what extent global content will be integrated into the US version. The app will only use data from US users to train its recommendation algorithm, further distancing it from TikTok's global system. As a result, the majority of suggested content will come from US creators.
DISCONNECTION FROM THE GLOBAL
The effort to separate the US app from the global platform has been underway for months. ByteDance executives have been preparing various plans to avoid a ban on the app in the US, under recently passed data security legislation.
The future of the app, which is used by nearly half of Americans, has been put on hold after a 2024 law required ByteDance to sell TikTok by Jan. 19. U.S. officials have argued that TikTok's Chinese ownership could make it vulnerable to Beijing's government influence for propaganda and espionage purposes.
After the initial deadline and a temporary service outage in January, TikTok began moving non-US user data out of US data centers managed by Oracle, ensuring that only US user data is stored in the US.
The company has also started sharing the code of its core algorithm since last year, a move that was previously reported by Reuters and denied by the company at the time.
Once the separation is complete, the development and management of core technology will be done independently by TikTok's global team, although some ByteDance employees may continue to support TikTok US on an outsourced basis.
This has raised internal concerns about whether the US version's algorithm will continue to be as effective without the support of ByteDance's global engineering talent.
NEGOTIATIONS AND POLITICAL PRESSURE
The project comes as ByteDance faces continued pressure from Washington to sell TikTok's U.S. operations. A deal to split the business was nearing completion this spring but was put on hold after China signaled it would not approve it following Trump's announcement of new tariffs on Chinese goods.
If the deal is approved, the new app is expected to be owned by a joint venture between a consortium of American investors and ByteDance, which will hold a minority stake.
However, it is not known whether Beijing has given the green light for copying the algorithm or selling operations to the US.
In the past, Chinese authorities have shown opposition to exporting TikTok's algorithm, considering it a strategic asset and a source of the platform's global popularity. In 2020, when the Trump administration first sought to sell TikTok to the US, China changed export control rules to include technologies such as recommendation algorithms.
At the time, TikTok executives rejected the idea of splitting off its US operations, considering it harmful to users and the global network.
Today, TikTok’s fate is also part of broader trade negotiations between Trump and China over tariffs. Trump said last week that he would restart talks with Beijing on a deal on TikTok. Although he said he was “not very confident” about China’s approval, he added that he believes “this deal is good for China and good for us.”