Oracle (ORCL) shares rose more than 6% in premarket trading to around $190 after Bloomberg reported that TikTok signed binding agreements to form a new U.S. joint venture led by Oracle, helping ease investor concerns about AI-driven valuation risks.
The optimistic reaction spread among risk assets. bitcoin jumped above $88,000, Invesco QQQ futures (QQQ), which tracks the performance of the Nasdaq-100, rose about 0.5%, while AI mining stocks also rose. IREN (IREN) gained about 4%, Cipher Mining (CIFR) rose about 4%, and CoreWeave (CRWV) rose about 6%.
Oracle will play a central role as the primary cloud infrastructure and data security provider, overseeing where TikTok’s AI recommendation systems are retrained and operated with US-based data.
Markets are treating the deal as validation that Oracle’s AI exposure is tied to real, large-scale workloads.
This is important because AI hyperscalers like Oracle and CoreWeave have come under pressure in recent weeks, with share prices hit by fears over the sustainability of massive spending on AI infrastructure and facing questions over heavy debt-financed data center buildouts, delayed projects and partnerships.
Markets’ attention now turns to the US personal consumption expenditure (PCE) price index data after a busy macro week that included US inflation data, employment figures and a BOJ rate hike.
