Editor’s Note: After picking Bitcoin in 2015, Nvidia in 2016, and Tesla in 2018, tech legend Jeff Brown is predicting a little-known Seattle company will unlock the full power of Q-AI — which he says is the next generation of AI. Click here to get the name of this company or read more below.
Dear Reader,
I believe this little-known Seattle company (click here to get the name, free of charge) will help us unlock the full power of Q-AI…
Which I predict will be the next generation of AI.
An AI is so powerful that it could trigger a $100 trillion tech revolution…
And return 1,500x MORE money than Nvidia.
Look, I picked Nvidia and predicted the rise of AI in February 2016…
When almost nobody was talking about artificial intelligence.
Shares have jumped by more than 27,000% since then.
That’s enough to turn $1,000 into $277,000.
But if you missed out on those big gains, don’t worry.
I believe we’re at the cusp of the biggest paradigm shift ever…
Yes, even bigger than AI.
As Inc. magazine says…
“[Q-AI] will reset everything, including the future of AI.”
So please click here to get the full story, including the name of this Seattle-based company.
We have so much to look forward to,
Jeff Brown
Founder & CEO, Brownstone Research
Oracle's TikTok Win Isn't Social Media—It's a Cloud Power Move
Reported by Jeffrey Neal Johnson. First Published: 1/23/2026.
Summary
- Oracle secures massive guaranteed data volume for its cloud infrastructure by becoming the exclusive technology partner for the new entity.
- The company utilizes its strong existing liquidity to fund this strategic acquisition without issuing any additional debt financing.
- Staking a claim in this platform positions Oracle to leverage vast datasets to train sovereign artificial intelligence models in the United States.
Wall Street has treated Oracle Corporation (NYSE: ORCL) with a volatile mix of optimism and concern in recent weeks. The company's aggressive spending on AI data centers worried some bondholders, leading to a sharp sell-off in late January after news of a bondholder lawsuit.
Still, the regulatory approval of the TikTok U.S. divestiture is a major stabilizing catalyst. A consortium led by Oracle, Silver Lake and MGX is set to acquire a controlling interest in TikTok's U.S. operations, which fundamentally changes the stock's narrative.
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Learn the critical details now.Investors should look past the headlines about viral dance videos. This deal doesn't mean Oracle is becoming a consumer social media company; it's an infrastructure play. By taking an equity stake in the new TikTok USA, Oracle is effectively buying its most valuable tenant — securing billions in future revenue for its cloud business and validating the company's large capital expenditures.
The Deal Structure: Buying the Landlord Rights
The agreement between the U.S. and China creates a corporate structure intended to address national security concerns while preserving the app's value. The deal values the new TikTok USA joint venture at roughly $14 billion. The ownership split is designed to ensure American technological control:
- Oracle Corporation: Acquires a ~15% equity stake.
- Silver Lake & MGX: Each acquires ~15% stakes.
- ByteDance: Retains a passive minority interest (<20%) with no voting rights on operational matters.
Oracle's role goes well beyond a simple equity investment. The company has been named the Trusted Technology Partner. In commercial real estate terms, this is like a construction firm buying a stake in a skyscraper to guarantee it handles maintenance and renovations going forward. The arrangement effectively locks out cloud competitors such as Amazon Web Services (NASDAQ: AMZN) and Google Cloud (NASDAQ: GOOGL). By holding access to the code and the servers, Oracle positions Oracle Cloud Infrastructure (OCI) as TikTok's primary cloud provider for the platform's lifespan.
Infrastructure as Equity: Why Volume Matters
This acquisition is the culmination of Project Texas, the plan launched in 2020 to host TikTok's data on U.S. soil. Moving from vendor to owner creates a strong revenue moat. In cloud computing, churn — customers leaving for a cheaper provider — is a constant risk. Owning a stake in TikTok makes the billions that TikTok spends on storage and processing flow to Oracle more reliably.
The volume of data TikTok generates is central to Oracle's efficiency. Oracle is spending billions to build massive supercluster data centers, such as the Abilene, Texas facility, which houses nearly 100,000 NVIDIA (NASDAQ: NVDA) GPUs. To make these costly facilities profitable, a cloud provider needs base-load volume — sustained, high-intensity usage that keeps servers near capacity.
TikTok supplies that base-load. Its hundreds of millions of users create a steady, non-cyclical demand for bandwidth and storage, validating Oracle's infrastructure investments and ensuring the new data centers have a paying tenant from Day One.
The Stargate Connection: AI Sovereignty
The inclusion of MGX is a detail many casual observers may miss but is important to the long-term thesis. MGX is a UAE-based investment vehicle focused on artificial intelligence. Their participation signals an ambition to leverage TikTok's data for more than content recommendations.
This aligns with Oracle's broader involvement in large-scale AI initiatives like the Stargate project, a multibillion-dollar effort tied to OpenAI and other partners to build next-generation AI infrastructure. Data fuels AI models, and TikTok holds one of the world's most valuable datasets on consumer behavior and video recognition. While privacy laws apply, the ability to train sovereign AI models on localized, U.S.-based data could give Oracle a meaningful advantage, shifting its role from a server vendor to a central player in national data sovereignty.
Liquidity Check: Why Cash Burn Is Overstated
Oracle's stock came under pressure after a lawsuit from bondholders, notably the Ohio Carpenters' Pension Plan. Plaintiffs allege Oracle did not fully disclose the debt needed to fund its AI expansion, stoking fears of over-leverage. The TikTok deal's financials, however, counter the narrative of a liquidity crisis.
On a $14 billion valuation, Oracle's 15% stake costs roughly $2.1 billion. Oracle's Q2 fiscal 2026 (FY2026) financial report shows about $19.8 billion in cash and marketable securities. That liquidity allows Oracle to fund the stake with cash on hand, avoiding new debt issuance.
Viewed in context, this is an efficient use of capital. Oracle spent about $12 billion in Q2 FY2026 alone on capital expenditures to build data centers. A $2.1 billion investment to secure the primary tenant for those facilities is a modest price to pay — it converts idle cash into an asset that drives immediate, high-margin revenue and helps offset concerns about negative free cash flow by locking in a dependable revenue stream.
Infrastructure Wins: Valuation Meets Validation
The TikTok divestiture approval validates Oracle's transition from a legacy database company to a hyperscale cloud provider. While Oracle's stock price reacted to backward-looking legal challenges, the forward-looking operational reality is improving. Oracle has effectively secured a major tenant for the pipes of the modern internet. It won't need to sell ads or moderate content — it needs only to provide secure, reliable infrastructure.
The key takeaway for investors is that recent debt fears are being offset by a substantial win in revenue security. Oracle is deploying cash to lock in guaranteed volume for its expanding data centers, de-risking its capital expansion plans. As Oracle integrates TikTok into its U.S. cloud regions, the market narrative is likely to shift from cash burn to revenue lock-in, giving the stock a stronger foundation to re-test prior highs.
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