In a week of stark contrasts for Oracle Corporation, the tech giant has emerged as the unlikely hero saving TikTok from a U.S. ban while simultaneously navigating choppy waters over financing a massive AI data center.
Just days ago, ByteDance signed binding agreements to transfer control of TikTok’s U.S. operations to a new joint venture, with Oracle stepping in as the trusted guardian of security and cloud infrastructure.
The TikTok deal sent Oracle’s shares soaring nearly 7% in early trading, a welcome boost for investors eyeing the company’s role in critical digital infrastructure. Yet the euphoria was tempered when reports surfaced that financing partner Blue Owl Capital had stepped away from a $10 billion AI data center project in Michigan, triggering a temporary 5% dip in stock price and renewed chatter about Oracle’s growing debt load.
This push-pull dynamic underscores Oracle’s high-stakes bet on both social media stability and the AI boom, where big wins come with equally big bills.
ByteDance, TikTok’s Chinese parent, finally inked the long-awaited pact after years of national security scrutiny dating back to 2020. The new entity, TikTok USDS Joint Venture LLC, based in Texas, will see American and global investors owning 80.1%, leaving ByteDance with a modest 19.9% stake.
Oracle, alongside private equity firm Silver Lake and Abu Dhabi-based MGX, forms the core of the managing investors, each holding 15%.
Oracle’s role? Handling cloud hosting and serving as the independent auditor to ensure U.S. user data stays secure and free from foreign influence. It’s a setup that lets over 170 million American users keep scrolling without interruption, while addressing Washington’s concerns about data privacy.
The deal, expected to close by late January, even prompted a rare moment of market cheer, with Oracle’s stock jumping on the news. Meanwhile, on the AI front, Oracle’s ambitions hit a minor speed bump.
A planned $10 billion, 1-gigawatt data center in Michigan, tied to powering OpenAI workloads as part of the broader Stargate initiative, lost its anticipated backer when Blue Owl Capital opted out over differing terms.
Oracle quickly noted the project remains on track, with a new equity partner already selected from competitive bids. Still, the episode briefly spotlighted the company’s expanding balance sheet, swollen by billions in commitments for AI infrastructure.
Investors seem to appreciate the irony: one day Oracle is the steadfast protector of viral dance challenges, the next it’s scrambling for funds to fuel the next generation of intelligent machines. The joint venture features a seven-member board with a majority of American directors, and ByteDance appointing just one.
U.S. data will reside exclusively in an Oracle-managed cloud, with the algorithm retrained on domestic information to sidestep manipulation risks. Content moderation for American users falls under the new entity’s control, though global operations like advertising remain linked to ByteDance.
For Oracle, co-founded by Larry Ellison, this positions the company squarely in the heart of U.S. tech policy. The Michigan facility, slated for construction start in early 2026, aims to support massive computing demands.
Blue Owl’s exit didn’t derail plans, as Oracle emphasized strong support from local officials and alternative financing options. Yet the timing amused observers, coming right as Oracle basked in TikTok glory.
In the end, Oracle’s dual dramas highlight how one company can simultaneously safeguard endless cat videos and chase the elusive promise of artificial general intelligence. All while keeping accountants busy tallying the costs.
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