0806 ET - D.A. Davidson believes TikTok parent ByteDance is the likely customer that signed a big cloud agreement with Oracle. Earlier this week Oracle disclosed that a new deal is expected to contribute more than $30 billion in annual revenue. Analysts Gil Luria and Alexander Platt in a research note say that a deal of this size can only be a few customers at best, leaving ByteDance or OpenAI and as the likely candidates. The analysts think recent news that a TikTok divestiture from ByteDance is back on the table supports the idea of an expanded relationship with Oracle, which has been linked as a potential buyer. If a deal happens, the analysts think it's likely that TikTok data centers would be hosted by Oracle, and ByteDance would utilize Oracle for non-US social media and research lab compute capacity. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

July 02, 2025 08:06 ET (12:06 GMT)

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