Oracle shares surged 6% in pre-market trading on Friday after TikTok signed a U.S. joint venture agreement with the tech giant, easing investor concerns over AI-driven valuation risks following a volatile week in markets.
According to Bloomberg, Oracle will serve as the primary cloud infrastructure and data security provider for the venture, overseeing the retraining and operation of TikTok’s AI recommendation systems on U.S.-based data. The deal is being seen as a vote of confidence in Oracle’s AI capabilities and its ability to handle large-scale, real-world workloads.
The news lifted broader risk assets. Bitcoin climbed above $88,000, while Invesco QQQ (QQQ) futures, tracking the Nasdaq-100, gained roughly 0.5%. AI-focused mining stocks also rallied, with IREN up about 4%, Cipher Mining (CIFR) rising around 4%, and CoreWeave (CRWV) jumping nearly 6%.
Investors viewed the agreement as validation that Oracle’s AI exposure is tied to tangible enterprise applications rather than speculative hype. This comes after a challenging period for AI hyperscalers like Oracle and CoreWeave, whose shares had been pressured by concerns over the sustainability of heavy AI infrastructure spending, debt-financed data center expansions, project delays, and uncertain partnerships.
The TikTok deal is now regarded as a key endorsement of Oracle’s strategic role in AI, boosting confidence among investors amid ongoing market volatility.
