Oracle has officially acquired a 45% ownership position in TikTok U.S. through the newly formed TikTok USDS Joint Venture LLC, alongside private equity firm Silver Lake and Abu Dhabi’s MGX. Non-Chinese ownership now totals 80%, while ByteDance retains 20%. Oracle’s participation fulfills the requirements of the September 2025 Executive Order, positioning it as a strategic infrastructure partner responsible for data protections, algorithm safeguards and content moderation under U.S. jurisdiction. The board has appointed Adam Presser as CEO of the venture, marking the first time Oracle holds a material stake in a major social media platform’s U.S. operations.

In its second quarter of fiscal 2026, Oracle reported a remaining performance obligations backlog of $523 billion, reflecting a 438% year-over-year increase driven by multi-year commitments from hyperscale cloud and AI customers. This backlog represents more than 30 times the company’s most recent quarterly revenue of $16 billion, effectively locking in a substantial portion of future top-line growth. Oracle Cloud Infrastructure sales grew 34% year-over-year in the quarter, with major contracts from leading AI developers underpinning the surge. Investors will monitor Oracle’s capital deployment to build data centers and support these obligations, as the company carries $112 billion in net debt.

Oracle is advancing its Primavera Cloud service toward FedRAMP Moderate authorization, targeting multi-year federal contracts estimated at $5 billion in cumulative opportunity. By aligning with U.S. government security standards, Oracle aims to strengthen its competitive position against AWS and Microsoft Azure in regulated markets. The FedRAMP initiative underscores Oracle’s strategy to leverage its cloud infrastructure footprint and integrated applications suite, positioning Primavera Cloud for deployment in defense, civilian and intelligence agencies over the next three years.

Appaloosa Management, led by billionaire David Tepper, reduced its Oracle holdings in late 2025 after strong gains in the company’s stock driven by cloud momentum and the TikTok joint venture announcement. Tepper’s fund initially increased its position in Oracle during 2023, citing the company’s AI infrastructure capacity and strategic partnerships such as the TikTok deal. Following a peak market valuation tied to a $300 billion commitment from OpenAI, Appaloosa booked profits and redirected capital into other AI-focused semiconductor stocks, reflecting a value-oriented approach to risk management in the technology sector.