Oracle share price surges after Trump administration says Oracle to secure TikTok algorithm in U.S.

Oracle stock price on Monday surged over three per cent to $320 after a senior official in President Donald Trump's administration today said that the tech giant will receive a copy of TikTok's algorithm to operate for US users. This came after Oracle shares surged about 43 per cent to a record high earlier in September, putting the company on track to join the elite trillion-dollar club, after it showcased its rise as a major AI cloud provider. Oracle has also named Clay Magouyrk and Mike Sicilia as CEOs, with current CEO Safra Catz becoming executive vice chair of the technology company's board. The announcement comes as Oracle founder Larry Ellison has been named as part of a group that could be part of a deal in which the U.S. will take control of the social video platform TikTok. The group is also said to include media mogul Rupert Murdoch and tech founder Michael Dell. Ellison currently serves as Oracle's chairman and chief technology officer.

TikTok Deal in USA

Determining next steps for the algorithm, currently owned by the Beijing-based ByteDance, has been one of the most closely watched issues during negotiations over TikTok's future.


The Trump administration official, who insisted on anonymity to discuss the emerging deal, said they believe the plan will satisfy national security concerns over a Chinese company potentially manipulating what is being shown to platform users.

Full details on investors have not been released. However, the official confirmed that Silver Lake, a private equity firm, is part of the investment group.

President Joe Biden, a Democrat, signed bipartisan legislation before leaving office requiring ByteDance, the Chinese company behind TikTok, to sell its assets to an American company or face a ban.

Trump, a Republican, has extended the deadline several times as he worked to reach a deal to keep TikTok available. He spoke to Chinese President Xi Jinping on Friday.

Oracle Share Price

Oracle unveiled four multi-billion-dollar contracts earlier in September, amid an industry-wide shift, led by companies such as OpenAI and xAI, to aggressively spend to secure the massive computing capacity needed to stay ahead in the AI race. The stock was up 35 per cent, after rising to hit a record high of $345.69, set for its biggest one-day percentage jump since 1992.

FAQs

Q1. How is Oracle stock performing?
A1. Oracle share price was trading over $320.

Q2. Who is new CEO of Oracle?
A2. Oracle has named Clay Magouyrk and Mike Sicilia as CEOs, with current CEO Safra Catz becoming executive vice chair of the technology company's board.