Oracle Corporation’s shares jumped nearly 8% in mid-day trading on Friday as investors reacted positively to news of a potential U.S. TikTok transaction and new fundraising discussions at OpenAI. Reports indicated that ByteDance has consented to divest over 80% of TikTok’s U.S. operations to a consortium comprising Oracle, Silver Lake, and Abu Dhabi-based MGX. This decision is intended to address U.S. national security concerns and avert a potential ban on the widely used short-video application. According to the agreement, Oracle and its partners will possess the majority stake in the newly established TikTok US entity, with a closure anticipated by late January.

“This would secure TikTok as a key customer for OCI, and could drive meaningful upside for the non-AI part of the business via durable, higher margin workloads,” stated Siti Panigrahi in a note. In discussing the advantages of the deal for Oracle, Evercore ISI analyst Kirk Materne noted that it secures the company a customer for its OCI services worth over $1 billion, highlights its capability to support one of the most data-intensive platforms globally, and emphasizes that the growth of OCI is not solely reliant on the OpenAI partnership.

Oracle gains equity upside and insights into advanced AI systems, simultaneously reinforcing OCI’s position as a reliable platform for sensitive data and sovereign government applications. The rebound also coincided with The Information reporting that OpenAI, the artificial-intelligence developer backed by Microsoft, is in early discussions to raise up to $100 billion at an estimated $750 billion valuation, underscoring continued appetite for AI investment.

Oracle’s shares experienced a decline earlier this month due to apprehensions regarding substantial infrastructure expenditures associated with a multibillion-dollar cloud partnership with OpenAI.