Shares of Oracle ( ORCL ) jumped more than 6% in premarket trading to around $190 after Bloomberg reported that TikTok had signed binding agreements to form a new U.S. joint venture led by Oracle, helping to ease investor concerns about AI-related valuation risks.
The optimistic reaction has spread to all risk assets. Bitcoin surged above $88,000, Invesco QQQ futures (QQQ), which track 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) climbed about 6%.
Oracle will play a central role as the primary provider of cloud infrastructure and data security, overseeing where TikTok’s AI recommendation systems are retrained and leveraged on U.S.-based data.
Markets view the deal as validation that Oracle’s exposure to AI is tied to real-world, large-scale workloads.
This matters because AI hyperscalers such as Oracle and CoreWeave have been under pressure in recent weeks, with stock prices hit by fears about the sustainability of massive AI infrastructure spending and facing doubts over debt-heavy data center construction, delayed projects and partnerships.
Markets’ attention now turns to US Personal Consumption Expenditures (PCE) Price Index data after a macroeconomically busy week that included US inflation data, employment figures and a BoJ rate hike.
