Oracle warns that a TikTok ban would hurt business
How might a U.S. TikTok ban impact Oracle's revenue and profit?
A U.S. TikTok ban could negatively impact Oracle's revenue and profit. Oracle provides cloud infrastructure for TikTok, which has over 150 million U.S. users. If Oracle is unable to provide services to TikTok and cannot redeploy that capacity in a timely manner, its revenues and profits would be adversely affected. TikTok's potential annual revenue for Oracle Cloud Infrastructure is estimated to be between $480 million and $800 million6.
What is Project Texas and how is it related to Oracle?
Project Texas is TikTok's $1.5 billion initiative aimed at building trust with the American government and users by addressing national security concerns. Oracle, an Austin-based software company, plays a significant role in this project by providing cloud infrastructure for TikTok's U.S. user data, ensuring it is stored on U.S. soil and monitored by American personnel. This partnership is meant to create a firewall, protecting U.S. user data from unauthorized foreign access.
What role does Oracle play in TikTok's U.S. operations?
Oracle serves as TikTok's "trusted technology provider" in the U.S., offering cloud infrastructure for the popular video-sharing app. This partnership was formed to address U.S. national security concerns related to TikTok's Chinese ownership. As part of the arrangement, Oracle would store U.S. user information without ByteDance having access to it, ensuring data privacy and security.