Dec 12: Oracle shares posted gains of nearly 8%, reflecting a significant shift in investor sentiment after weeks of caution. The rally was driven by optimism surrounding a potential acquisition of TikTok’s U.S. operations by a consortium led by Oracle, as well as fresh rumors of an ambitious funding round at OpenAI that reignited appetite for the artificial intelligence sector.
According to reports, ByteDance would sell more than 80% of TikTok’s U.S. business to a group in which Oracle would play a central role. The transaction aims to address regulatory and national security concerns in the United States, while also redefining Oracle’s strategic positioning as a key technology partner to one of the
world’s fastest-growing digital platforms with massive data volumes.
One of the deal’s main attractions is that TikTok would become a structural client of Oracle Cloud Infrastructure (OCI). This would entail intensive, long-term workloads, supported by stable contracts and high margins, strengthening Oracle’s cloud business beyond segments tied solely to generative artificial intelligence.
Market analysts emphasized that the transaction would validate OCI as a platform capable of handling sensitive data at scale, a critical factor in an environment where data sovereignty and cybersecurity have become strategic priorities for governments and large corporations. Such validation could pave the way for new institutional clients and government contracts.
The upside move was further reinforced by reports suggesting that OpenAI may be preparing a funding round of up to $100 billion, with a valuation near $750 billion. Figures of this magnitude have reignited enthusiasm across the entire artificial intelligence ecosystem, indirectly benefiting infrastructure and cloud service
providers such as Oracle.
It is worth noting that in prior weeks, the company’s shares had shown weakness amid market concerns about the high infrastructure spending required to compete in the AI race. However, the prospect of recurring revenues, long-term contracts, and economies of scale has shifted the narrative, reducing the focus on costs and
reinforcing the view of structural growth.
In a broader context, Oracle’s rally fits into a market rotation toward companies with clear cloud and artificial intelligence business models, supported by solid cash flows and anchor clients. Unlike more speculative players, Oracle combines exposure to long-term trends with a well-established enterprise base.
In conclusion, the sharp advance in Oracle’s shares reflects the market’s reassessment of its role within the global technology ecosystem. The potential TikTok transaction and renewed optimism around artificial intelligence, fueled by OpenAI, reinforce Oracle’s perception as a strategic player in data infrastructure and
cloud services. If these catalysts materialize, the company could enter a new phase of sustained growth, with greater revenue visibility and a stronger competitive
position.