One picture to understand TikTok's new solution in the United States: Joint venture company only responsible for data security, from "Cloud Guizhou" to "Cloud Texas"
Just now, in the early morning of September 26th Beijing time, US President Trump issued an executive order declaring that the new version of TikTok's US operation plan complies with US relevant legal requirements and will ensure TikTok continues to operate in the US. A joint venture company will be responsible for TikTok's data security and content security in the US, with US Vice President JD Vance stating that the estimated value of this joint venture company is $14 billion. Since these services such as data security and content protection are non-profit, in order to ensure the operation of the joint venture company, there will also be a commercially reasonable revenue sharing arrangement between the two entities.
From "Cloud Guizhou" to "Cloud Texas," this latest plan is similar to Apple's "Cloud Guizhou" operation in China. Due to the fact that TikTok's data security service provider Oracle is headquartered in Texas, USA, it is also jokingly referred to as "Cloud Texas."
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