Oracle shares jump on TikTok deal progress, OpenAI fundraise talks

TikTok's parent company, ByteDance, has signed a deal to sell its U.S. operations, marking a significant shift after years of pressure from Washington to divest. This decision comes amid ongoing scrutiny regarding data privacy and national security concerns associated with the app's operations in the United States.

TikTok has formalized investment agreements with Oracle and two investment firms, a significant step towards maintaining its operations in the United States amid ongoing scrutiny and potential bans. This move aims to solidify TikTok's presence in the U.S. market, addressing years of uncertainty regarding its future in the country.

TikTok has approved the sale of its U.S. operations to Oracle and other American investors, a decision influenced by ongoing scrutiny from the U.S. government and previous threats of a ban by President Donald Trump if the company did not divest its American assets. This move comes as part of a broader effort to comply with regulatory demands and mitigate national security concerns.

AI-themed stocks, particularly Oracle, Nvidia, and Tesla, faced significant declines, contributing to a drop in the Nasdaq index. Each of these companies saw their shares fall by more than 3%, reflecting growing investor concerns about the sustainability of the artificial intelligence market.

Amazon is reportedly in discussions to invest over $10 billion in OpenAI, the developer behind ChatGPT, as part of the startup's ongoing efforts to secure funding for its extensive data center expenditures. If finalized, this investment could elevate OpenAI's market valuation to over $500 billion.

Oracle's stock has come under pressure following a disappointing quarterly earnings report, which revealed revenues that fell short of investor expectations. This has led to a significant decline in its stock price, raising concerns about the company's financial health and future growth prospects.

Former UK Chancellor George Osborne has been appointed as the managing director of OpenAI for Countries, based in London. He expressed that it is a privilege to take on this role at a leading artificial intelligence company.