Oracle (ORCL) shares rose more than 6% in premarket trading to around $190 after Bloomberg reported that TikTok signed a binding agreement to form a new U.S. joint venture led by Oracle, helping to ease investor concerns about artificial intelligence-driven valuation risks.
This optimistic reaction spread to risk assets. Bitcoin Invesco QQQ (QQQ) futures, which track the performance of the Nasdaq 100, were up around 0.5%, topping $88,000, while AI mining stocks were also higher. IREN (IREN) is up about 4%, Cipher Mining (CIFR) is up about 4%, and CoreWeave (CRWV) is up about 6%.
Oracle will play a central role as the primary cloud infrastructure and data security provider, overseeing the retraining and operation of TikTok’s artificial intelligence recommendation system on U.S. data.
The market sees the agreement as validation that Oracle’s AI exposure is relevant to real, large-scale workloads.
That matters as AI hyperscalers such as Oracle and CoreWeave have come under pressure in recent weeks, with their shares hammered by concerns about the sustainability of large-scale AI infrastructure spending and facing questions about huge debt-financed data center expansions, project delays and partnerships.
After a run of macro data including U.S. inflation data, employment data and a Bank of Japan interest rate hike, market attention now turns to U.S. personal consumption expenditures (PCE) price index data.