What we know about MGX’s TikTok play: TikTok signed binding agreements last week to carve out its US operations into a new joint venture, handing state AI investor MGX a stake in the social media company, Bloomberg and Reuters report. The JV will also be majority-owned by Oracle and Silver Lake, with each getting a 15% stake.

What’s locked in: TikTok CEO Shou Zi Chew told staff that the transaction — expected to close on 22 January 2026, pending Chinese regulatory approval — will see the new US entity operate independently from the parent firm, which will owns 19.9% of the JV, with authority over data protection, content moderation, and algorithm security. Affiliates of ByteDance’s existing investors will hold the balance.

The US business is valued at around USD 14 bn, according to US Vice President JD Vance, broadly in line with figures floated earlier this year.

Background: As we previously reported, MGX was expected to join Oracle and Silver Lake in a White House-backed transaction aimed at keeping TikTok operating in the US while trimming Chinese ownership. Earlier details suggested the three investors would collectively hold 45%, with ByteDance capped below 20% — a structure that has now been largely confirmed.

The key shift lies in governance structure: The new entity will be overseen by a seven-member, majority-American board, TikTok says, while ByteDance will continue to license its recommendation algorithm to the US venture — leaving open questions regarding the extent of Beijing’s ongoing influence.

Why this matters: A bigger scope for MGX?

While thus far MGX has branded itself as an AI and digital infrastructure investor, with investments in AI players like OpenAI, a role in AI data center buildout initiative Stargate, and acquisitions of players like Texas-based Aligned Data Centers, the acquisition marks a slight deviation from its original scope.

Our take

While MGX has been laser-focused on boosting its portfolio of AI investments, it’s also played a key role as a vehicle for the UAE’s investments in the US. In addition to its acquisition of Aligned Data Centers and several other US-focused investments, it helped fund the acquisition of Intel’s programmable chip unit Altera — a move that helped address the US tech firm’s burgeoning debt as US President Donald Trump also looked to save the firm with the government’s acquisition of a stake in the company. The AI investor’s mandate includes a 70-80% focus on the US market.

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