All articles tagged with #oracle
Hedge fund investor Michael Burry questions when the aggressive AI data-center buildout will end, criticizing hyperscalers such as Oracle, Alphabet (Google), Meta, Microsoft, Amazon and Nvidia for expansive capex and potential cash-flow strain. He warns of possible earnings restatements and depreciation masking costs, and likens current AI hype to past bubbles like the 1920s radio boom and the dot-com era.
OpenAI’s plan to rapidly deploy AI compute through the Stargate joint venture with Oracle and SoftBank has stalled, hampered by leadership gaps and disagreements over who does what, leaving the three partners without staffing or actively developing OpenAI’s data centers and slowing the broader race for AI-powered computing power.
Oracle jumped about 12% during a choppy tech week after unveiling plans to fund AI cloud infrastructure, while other top AI names like Microsoft and Amazon sank into bear market territory and Apple faced margin pressures from higher memory prices; Nvidia drifted lower despite good AI headlines. The Magnificent Seven were all negative year-to-date, underscoring a broader tech rout even as Oracle’s rally suggested shifting sentiment around AI investments.
AI-driven disruption is triggering a sharp selloff in data, consulting, and SaaS stocks, revealing vulnerabilities in high-fee recurring revenue models. Oracle stands out as a leveraged AI bet with a strained balance sheet and customer-concentration risk. The market is differentiating between firms monetizing AI and cash-burning ones, pressuring multiples and making cash flow, leverage, AI monetization, and core business quality key filters for identifying resilient winners and potential buying opportunities.
Oracle shares jump after D.A. Davidson upgrades ORCL to Buy with an unchanged $180 target, citing improving AI-partnership dynamics and OpenAI alignment with Oracle as a key driver; Oracle also reports double-digit growth in its India cloud infrastructure operations with strong OCI demand. Analysts show a Strong Buy consensus and an average target of about $289.62, implying roughly 86% upside potential.
Nvidia and Oracle are signaling warning signs for the AI boom: Oracle plans to raise up to $50 billion in 2026 through debt and equity to fund cloud AI growth, while Nvidia’s planned up to $100 billion OpenAI investment appears to be stalled amid concerns about profitability and OpenAI’s competitiveness. Analysts say rising compute costs and flat revenue per gigawatt could squeeze AI infrastructure profits, possibly slowing big‑ticket AI bets.
Oracle announced a calendar-year 2026 plan to raise $45-$50 billion through a balanced mix of debt and equity—including an ATM equity program and mandatory convertible preferred securities—to fund expansion of its Oracle Cloud Infrastructure, with a one-time senior unsecured bond issue early in 2026 and no additional bonds that year, aiming to maintain an investment-grade balance sheet as it serves large cloud customers.
Several TikTok creators reported they could not upload anti-ICE videos or that uploads were delayed, with the company saying a power outage at a US data center caused glitches in uploading and video recommendations. The issues emerged as TikTok’s US ownership shifted to a private joint venture that includes Oracle, fueling worries about censorship and data access. Experts note that proving censorship is hard due to opaque recommendation systems, while some creators saw ongoing upload, caption, and view-count problems and even left the platform. TikTok stresses the glitches are unrelated to the ownership changes and says the problems are ongoing.
TikTok apologized after a US data-center power outage caused widespread glitches and disrupted feeds for hundreds of thousands of US users; the company is stabilizing the service with Oracle involved in its US operations following a deal that expands its oversight of US data and infrastructure.
TikTok’s US data-center power outage disrupted services overnight, blocking uploads and causing the For You feed to reset for many users. The Oracle-led USDS venture says it’s stabilizing the service with data routed through Oracle centers, and notes it’s unclear whether the outage is connected to a weekend snowstorm.
TikTok’s US joint venture updated its privacy terms to allow collecting precise location data from American users (depending on device settings), expanding beyond the prior “approximate” location data. The venture, led by Oracle and backed by Silver Lake and MGX, will also collect more data on interactions with TikTok’s AI tools and retrain the algorithm in Oracle’s US cloud. The update accompanies the US deal to operate TikTok in the country amid security concerns and a 2024 law; rollout in the US is not dated, and GPS data would be opt-in rather than enabled by default.
TikTok announced a US-led Joint Venture (TikTok USDS) to run the app in the United States, with ByteDance retaining a 19.9% stake and Oracle licensed to manage and retrain the recommendation algorithm on US user data in a secure Oracle cloud. Most users won’t need to download a new app, but the For You feed could evolve as the algorithm is updated on US data, and terms now include under-13 limits and AI-use disclosures. The specifics of how user experience will change remain unclear, though the company says it will preserve a “global experience” for US users and extend safeguards to CapCut and Lemon8.
The deal splits TikTok’s U.S. operation from its global business, moving control of the US app to a new entity licensed to use the original algorithm and backed by Oracle, with US data hosted domestically. ByteDance retains a minority stake but loses control of the feed and global strategy, a shift that could affect advertisers, creators, and tech development while illustrating how Chinese tech firms may expand abroad under tighter geopolitical constraints.
A $14 billion deal results in Oracle- and Silver Lake-led investors owning the majority of TikTok’s U.S. arm (over 80%), aiming to insulate the app from China and comply with a 2024 law. But crucial questions remain about who actually controls the recommendation algorithm (ownership vs. licensing), how data is stored and protected (Oracle cloud is to be used), and whether the arrangement satisfies lawmakers’ security concerns; bans on government devices may persist and could require new legislation or legal scrutiny.
TikTok has finalized a $14 billion deal to create a U.S.-based subsidiary with a seven-member board, granting Oracle, Silver Lake, MGX, and the Dell Family Office 15% stakes each and leaving ByteDance with about a 20% stake. The U.S. entity will operate independently and control the app’s algorithm and data within its cloud, addressing national-security concerns and allowing the previously proposed ban to be avoided after approval from Trump.