Oracle shares jumped 6% in pre-market trading on Friday following news that TikTok signed a U.S. joint venture agreement led by the tech giant, helping to ease investor concerns over AI-driven valuation risks after a turbulent macro week.
Bloomberg reported that TikTok’s binding agreements position Oracle as the primary partner for cloud infrastructure and data security, responsible for retraining and operating TikTok’s AI recommendation systems on U.S.-based data. The deal is being viewed as a strong endorsement of Oracle’s AI capabilities and its role in large-scale, real-world workloads.
The upbeat news rippled across risk assets. Bitcoin surged above $88,000, while Invesco QQQ (QQQ) futures, tracking the Nasdaq-100, climbed roughly 0.5%. AI mining stocks also benefited, with IREN up about 4%, Cipher Mining (CIFR) gaining around 4%, and CoreWeave (CRWV) rising nearly 6%.
The market response underscores investor relief that Oracle’s AI exposure is grounded in tangible enterprise applications rather than speculative hype. This comes after AI hyperscalers, including Oracle and CoreWeave, faced pressure in recent weeks due to concerns over the sustainability of massive AI infrastructure spending, debt-financed data center expansions, delayed projects, and uncertain partnerships.
The TikTok deal is seen as a validation of Oracle’s strategic positioning in AI and a boost for investor confidence amid broader market volatility.
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