Oracle has emerged as a strong candidate to support TikTok's operations in the United States, according to the technology news outlet The Information, which reported on the 13th.
With a sale of TikTok's U.S. subsidiary being pursued by next month, Oracle is noted as the most promising candidate for a cloud technology partner, the outlet explained. Investors, bankers, and former executives familiar with TikTok’s parent company, ByteDance, indicate that ByteDance appears to prefer Oracle over other cloud providers.
Oracle, which provides cloud services, has received high marks for storing U.S. user data for TikTok on its servers since 2022.
Sources indicated that President Donald Trump also supports Oracle's role in the TikTok sale process, raising the possibility further.
On January 21, the day after President Trump’s inauguration, Oracle announced the Stargate project, a joint venture with OpenAI and Japan's SoftBank to establish data centers in the United States, planning to invest up to $500 billion over the next four years. However, the outlet reported that while Oracle is a strong candidate as a cloud technology partner, ByteDance seems to want to continue direct involvement in TikTok’s operations, with Oracle likely to take on a partnership role.
Additionally, the outlet noted that President Trump believes TikTok has helped him win the election, which could enhance ByteDance's negotiating power.
However, the 'TikTok prohibition law' prohibits new services unless TikTok's U.S. subsidiary is sold to U.S. corporations, making it uncertain if ByteDance can continue operations even if Oracle participates as a partner. Initially, the law was set to take effect on January 19, leading to TikTok temporarily halting services, but President Trump postponed the law’s implementation for 75 days, allowing services to be resumed.