Shares of Oracle (ORCL) jumped more than 6% in pre-market trading to around $190 after Bloomberg reported that TikTok has signed binding agreements to form a new US joint venture led by Oraclewhich helps alleviate investors’ concerns about the risks of artificial intelligence-based valuation.
The optimistic reaction spread across risk assets. Bitcoin Above $88,000, Invesco QQQ (QQQ) futures, which track the performance of the Nasdaq-100, jumped nearly 0.5%, while AI mining stocks also rose. IREN (IREN) shares are up about 4%, Cipher Mining (CIFR) shares are up about 4% and CoreWeave (CRWV) shares are up about 6%.
Oracle will play a central role as the primary provider of cloud infrastructure and data security, overseeing the retraining and operation of TikTok’s AI recommendation systems on US-based data.
Markets are treating the agreement as confirmation that Oracle’s AI exposure is tied to real, large-scale workloads.
This is important as AI blue-chip companies like Oracle and CoreWeave have come under pressure in recent weeks, with stock prices weighed down by concerns about the sustainability of massive AI infrastructure spending and facing uncertainties around debt-heavy data center buildouts, project delays, and partnerships.
Markets’ attention is now turning to the US Personal Consumption Expenditures (PCE) price index data after a heavy week on the macroeconomic front including that US inflation data, Job numbers And a Interest rate hike from the Bank of Japan.
