Business may be affected by a Possible TikTok Ban, Alerts Oracle

TikTok has undertaken projects like "Project Texas," which aims to use Oracle's domestically centered cloud infrastructure to sustain its U.S. operations.

In its most recent annual report, Oracle Corporation has issued a warning that a prospective ban on TikTok in the US could have a detrimental effect on its business operations. The software company which supplies TikTok with vital cloud infrastructure services, emphasized the financial hazards of losing TikTok as a client in an instance if the platform is compelled to sell its U.S. operations.

Recently, President Joe Biden approved legislation mandating that ByteDance, the Chinese parent company of TikTok, sell its U.S. assets within a certain period of time in order to avoid being banned. Oracle has played an instrumental role in this matter by offering cloud services in accordance with plans meant to guarantee TikTok's continuous availability in the United States, notwithstanding persistent worries about data security.

TikTok has undertaken projects like "Project Texas," which aims to use Oracle's domestically centered cloud infrastructure to sustain its U.S. operations. Oracle CEO Safra Catz acknowledged the value of the company's partnership with TikTok and highlighted efforts to maintain operational continuity while adhering to regulatory standards.

Oracle's financial relationship with TikTok remains unrevealed but analysts predict that these services will bring in a sizable amount of money, given TikTok's substantial American user base and Oracle's reputation in the cloud infrastructure field.