Oracle said it will be TikTok's cloud provider in a deal that gives it a 12.5% stake in the social media network and a key reference customer.
In a statement[1], Oracle said "the technical decision" by TikTok was based on the Zoom reference account. However, TikTok, owned by Bytedance, was facing a Sunday shutdown order over security concerns by President Trump. Trump said he approved the deal earlier Saturday.[2]
Oracle CTO Larry Ellison said that TikTok will run on Oracle Cloud. CEO Safra Catz said:
Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud. We are a hundred percent confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok's American users, and users throughout the world.
For Oracle, the cloud deal with TikTok is a win and can give it a higher profile.
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