Oracle Corporation (ORCL) shares plummeted 9.46% in intraday trading on Monday, January 27, 2025, as the technology giant faced mounting concerns over the uncertainty surrounding its potential involvement in a deal to oversee the operations of TikTok, a popular video-sharing app owned by Chinese company ByteDance.

The sell-off in Oracle's stock was further exacerbated by the growing threat posed by Chinese artificial intelligence (AI) startup DeepSeek, which recently developed an open-source large language model that competes with OpenAI's ChatGPT and requires less computing power, potentially disrupting the AI landscape and challenging the dominance of major players like Microsoft and Oracle.

According to Reuters, the Trump administration is exploring options to have Oracle and other US investors take control of TikTok's global operations, addressing national security concerns raised by the app's Chinese ownership. However, President Donald Trump has stated that a decision on TikTok's future will likely be made within the next 30 days, injecting uncertainty into Oracle's potential involvement.

The uncertainty surrounding the TikTok deal, coupled with the rise of DeepSeek as a formidable AI competitor, has raised concerns among investors about Oracle's ability to maintain its position in the rapidly evolving AI and technology sectors. DeepSeek's open-source model, which uses less advanced hardware and has already gained significant traction, challenges the narrative that substantial budgets and access to top-tier chips are essential for AI development.