Oracle Corporation witnessed a significant uptick in its stock price following two major developments that underscore its growing influence in both technology and national security. The White House has confirmed Oracle’s pivotal role in a proposed agreement to restructure the operations of TikTok within the United States. According to an official statement, the plan involves Oracle reconstructing and securing a new, standalone version of TikTok’s powerful content recommendation algorithm. This arrangement is designed to place control of the popular app’s core software firmly in American hands, addressing persistent bipartisan concerns in Congress regarding its Chinese ownership under ByteDance Ltd.
The proposed solution involves a U.S.-based buyer consortium leasing a copy of the existing algorithm from ByteDance. Oracle’s critical task would be to completely retrain this algorithm from the ground up, effectively creating a new, secure American-operated system. This high-profile government endorsement positions Oracle as a trusted partner in a sensitive geopolitical technology matter, boosting investor confidence in its capabilities.
In a separate but simultaneous announcement, Oracle revealed a major shift in its executive leadership. The company has named Clay Magouyrk and Mike Sicilia as its new co-chief executive officers, replacing long-time CEO Safra Catz. Magouyrk, previously the president of Oracle’s crucial cloud infrastructure unit, and Sicilia, the former president of Oracle Industries, bring their expertise to the top roles following their appointments as division presidents in June. Safra Catz, who has led the company since 2014, will transition to the position of executive vice chair of the board of directors, continuing to guide corporate strategy.
Larry Ellison, Oracle’s Chairman of the Board and Chief Technology Officer, stated, “Humanity is investing enormous resources in the race to advance Artificial Intelligence. Oracle Cloud Infrastructure is playing a major part in that effort. Clay’s years of experience leading Oracle’s large, fast-growing Cloud Infrastructure business has demonstrated his readiness for a CEO role.
Mike has spent the last several years modernizing Oracle’s Industry applications businesses—including Oracle Health—by completely rebuilding those applications using the latest AI technologies. A few years ago, Clay and Mike committed Oracle’s Infrastructure and Applications businesses to AI—it’s paying off. They are both proven leaders, and I am looking forward to spending the coming years working side-by-side with them. Oracle’s future is bright.” Source Oracle
