Oracle finalized a deal to become a key partner in TikTok's new US entity. The company secured an approximate 15% stake. Oracle also gained the role of "Trusted Technology Partner."
Oracle will host TikTok's U.S. user data on its Oracle Cloud Infrastructure (OCI). Oracle will also oversee the content recommendation algorithm. This oversight ensures the algorithm remains free from outside manipulation.
The partnership is a strategic victory for Oracle. It locks in a major, long-term tenant for the company's expanding cloud services. The deal justifies Oracle's aggressive, debt-funded investment strategy in AI and data-center buildouts.
However, this heavy spending raises investor concerns about the company's balance sheet and future cash flow. Oracle forecasts capital expenditures of $50 billion for fiscal 2026.