Oracle’s stock rose Monday after the White House confirmed the company will oversee TikTok’s algorithm in the US.
As part of Washington and Beijing’s yet-to-be-finalized deal over TikTok’s American operations, Oracle is set to license the app’s crown-jewel algorithm, while the recommendation engine will remain the property of Chinese owner ByteDance. Oracle’s stock is on track for its best year since 1989 thanks to its massive AI-driven push into cloud infrastructure: That division’s president was named co-CEO Monday, and Oracle’s recent $300 billion deal to provide OpenAI with computing power is one of the largest cloud contracts ever signed.
But Oracle’s investors are ignoring the risk that stems from “OpenAI’s huge expected losses over the next several years,” The Information argued.