Oracle to take a 12.5% stake in TikTok Global

In a double announcement, Oracle has become TikTok’s secure cloud technology provider and taken a 12.5 percent stake in TikTok Global.

According to Oracle, this technical decision by TikTok was heavily influenced by Zoom’s recent success in moving a large portion of its video conferencing capacity to the Oracle Public Cloud.

“TikTok picked Oracle’s new Generation 2 Cloud infrastructure because it’s much faster, more reliable, and more secure than the first generation technology currently offered by all the other major cloud providers,” said Larry Ellison, Chief Technology Officer of Oracle.

TikTok will run on the Oracle Cloud and Oracle will become a minority investor in TikTok Global.

The move has saved TikTok from being wiped out from the US market. It has  been welcomed by US President Donald Trump, who said he “approves a deal in concept” that will allow TikTok to continue to operate in the country.

“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. This greatly improved security and guaranteed privacy will enable the continued rapid growth of the TikTok user community to benefit all stakeholders,” said ” said Safra Catz, CEO of Oracle.

Oracle will combine its secure cloud technology with continuous code reviews, monitoring and auditing to provide assurance that US TikTok user data is private and secure.