Oracle has finalized a deal to acquire a substantial minority interest in the newly formed TikTok USDS Joint Venture LLC, joining Silver Lake and Abu Dhabi’s MGX to collectively own 45% of TikTok’s U.S. operations. Under the agreement, non-Chinese investors now control 80% of the joint venture, with ByteDance retaining 20%. The transaction satisfies the Executive Order signed in September 2025, and names Adam Presser—former head of U.S. operations—as CEO. For Oracle, the deal represents both a strategic move into consumer-facing social media infrastructure and an opportunity to showcase its cloud and data-security solutions to a massive user base of more than 150 million U.S. accounts.

Following the announcement of the new joint venture structure, U.S. daily average uninstall rates for TikTok surged by nearly 150% over a five-day window compared with the prior three-month average, according to Sensor Tower. Social media backlash centered on perceived changes to TikTok’s privacy policy, despite unchanged language around data collection. While uninstall spikes reflect short-term user skepticism, investors will be watching closely to see if Oracle’s governance and technology safeguards can restore confidence and stabilize engagement metrics.

In its second quarter of fiscal 2026, Oracle reported that remaining performance obligations (RPO) climbed 438% year over year to reach $523 billion. This backlog—driven largely by new commitments from hyperscale customers such as Meta and Nvidia—equates to multiple years of forward revenue and underscores Oracle’s strategic role as an AI infrastructure provider. Cloud Infrastructure revenue grew approximately 34% year over year in the quarter, reflecting strong demand for high-performance computing and data services. The sizable RPO cushion is expected to support double-digit revenue growth through fiscal 2028, although execution risk remains tied to the timing of data-center investments.

Oracle is advancing its Primavera Cloud platform through the FedRAMP Moderate authorization process, aiming to meet stringent federal security and compliance requirements. Achieving FedRAMP Moderate status would position Oracle to compete for multi-year contracts across U.S. government agencies, a market projected to exceed $20 billion annually for cloud services. Industry analysts note that federal agency migration to cloud environments offers a growing addressable market, and that Oracle’s suite of project-management, ERP and infrastructure services could capture significant share once authorization is secured.