RJ Hamster
Apple’s new $500B project…
Apple’s new $500B project…
Apple just invested a combined $500B in their new project, but most people have no idea there’s a way to collect additional income from this $15 trillion megatrend.
It’s all thanks to a federal law that was just reinforced by one of President Trump’s mandates.
And with up to $68 billion up for grabs…
There’s more than enough money to give those who take action a ton of s extra monthly income.
President Trump’s former economic advisor has agreed to reveal all the details…
Including how you can claim your share of up to $68 billion that must be dispersed by Federal law.
To see his full breakdown, including the steps you can take, click here.
Regards,
Steven Longenecker
Editorial Director, Wide Moat Research
Just For You
Oracle’s TikTok Win Isn’t Social Media—It’s a Cloud Power Move
Reported by Jeffrey Neal Johnson. Article Posted: 1/23/2026.
What You Need to Know
- Oracle secures massive guaranteed data volume for its cloud infrastructure by becoming the exclusive technology partner for the new entity.
- The company utilizes its strong existing liquidity to fund this strategic acquisition without issuing any additional debt financing.
- Staking a claim in this platform positions Oracle to leverage vast datasets to train sovereign artificial intelligence models in the United States.
Wall Street has treated Oracle Corporation (NYSE: ORCL) with a volatile mix of optimism and concern in recent weeks. The company’s aggressive spending on AI data centers alarmed some debt investors, triggering a sharp sell-off in late January after news of a bondholder lawsuit.
Still, the regulatory approval of the TikTok U.S. divestiture is a major stabilizing catalyst. A consortium led by Oracle, Silver Lake, and MGX is set to acquire a controlling interest in TikTok’s U.S. operations, which fundamentally changes the stock’s narrative.
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Investors should look past headlines about viral videos: this deal does not mean Oracle is becoming a consumer social media company. It is a deliberate infrastructure play. By taking an equity stake in the new TikTok USA, Oracle is effectively buying its most valuable tenant. That secures billions in future cloud revenue and validates the company’s massive capital expenditures.
The Deal Structure: Buying the Landlord Rights
The agreement between the U.S. and China creates a unique corporate structure to address national security concerns while preserving the app’s value. The deal values the new TikTok USA joint venture at roughly $14 billion. The ownership breakdown is designed to ensure American technological control:
- Oracle Corporation: Acquires an approximately 15% equity stake.
- Silver Lake & MGX: Each acquires roughly 15% stakes.
- ByteDance: Retains a passive minority interest (<20%) with no voting rights on operational matters.
Oracle’s role goes far beyond writing a check. The company has been designated the Trusted Technology Partner. In commercial real estateterms, this is akin to a construction firm buying a stake in a skyscraper to ensure it alone handles maintenance and renovations. The setup effectively locks out cloud competitors such as Amazon’s (NASDAQ: AMZN) Amazon Web Services (AWS) and Alphabet’s (NASDAQ: GOOGL) Google Cloud. By holding the keys to the code and the servers, Oracle ensures TikTok’s computing needs are serviced on Oracle Cloud Infrastructure (OCI) for the foreseeable future.
Infrastructure as Equity: Why Volume Matters
This acquisition is the final evolution of Project Texas, a plan first proposed in 2020 to host TikTok’s data on U.S. soil. By transitioning from vendor to owner, Oracle has built a strong revenue moat. In cloud computing, churn—the risk of customers leaving for cheaper providers—is constant. Owning a stake in TikTok helps ensure that the billions the app spends on storage and processing flow into Oracle’s top line.
The sheer volume of data TikTok generates is critical for Oracle’s operational efficiency. Oracle is spending billions to build massive supercluster data centers, such as the Abilene, Texas facility, which houses nearly 100,000 NVIDIA (NASDAQ: NVDA) GPUs. To make these expensive facilities profitable, a cloud provider needs base-load volume—a guaranteed level of high-intensity usage that keeps servers running near capacity.
TikTok provides exactly that. The app’s hundreds of millions of users create constant, non-cyclical demand for bandwidth and storage. That guaranteed volume validates Oracle’s data-center investments, ensuring the facilities have a paying tenant from Day One.
The Stargate Connection: AI Sovereignty
MGX’s inclusion in the deal is a detail many casual observers might miss, but it matters for the long-term thesis. MGX is a UAE investment vehicle focused on artificial intelligence. Their participation suggests an ambition to leverage TikTok’s data for more than content recommendations.
This partnership aligns with Oracle’s broader Stargate project, a large initiative involving OpenAI and SoftBank to build next-generation AI infrastructure. Data fuels AI models, and TikTok has one of the world’s most valuable datasets on consumer behavior and video recognition. While privacy laws will apply, the ability to train sovereign AI models on localized, U.S.-based data could give Oracle an edge in the AI arms race, moving the company from a server provider to a central player in national data sovereignty.
Liquidity Check: Why Cash Burn Is Overstated
Oracle’s stock recently came under pressure after a lawsuit from bondholders, including the Ohio Carpenters’ Pension Plan. Plaintiffs alleged Oracle did not fully disclose the debt needed to fund its AI expansion, raising fears of over-leverage. The TikTok deal’s finances, however, help counter the idea of a liquidity crisis.
At a $14 billion valuation, Oracle’s ~15% stake will cost roughly $2.1 billion. Oracle’s Q2 fiscal year 2026 (FY2026) report shows about $19.8 billion in cash and marketable securities. That liquidity position allows Oracle to fund the strategic acquisition from cash on hand without issuing new debt.
Investors should view this as an efficient use of capital. For context, Oracle spent about $12 billion in Q2 FY2026 alone on capital expenditures to build data centers. A $2.1 billion investment to secure the primary tenant for those centers is relatively modest. It converts idle cash into an active asset that drives immediate, high-margin revenue. That helps offset concerns about negative free cash flow by locking in a reliable, cycle-resistant source of incoming cash.
Infrastructure Wins: Valuation Meets Validation
The TikTok divestiture approval validates Oracle’s transition from a legacy database company to a modern hyperscale cloud provider. While Oracle’s stock price has reacted to backward-looking legal issues, the forward-looking operational reality is improving. Oracle has effectively secured a critical pipe of the modern internet: it does not need to sell ads or moderate content; it simply needs to provide the secure infrastructure that makes the platform work.
The key takeaway for investors is that recent fears about debt are being countered by a major win in revenue security. Oracle is deploying available cash to lock in guaranteed volume for its growing data centers, de-risking its capital expansion. As the company integrates TikTok into its U.S. cloud regions, the narrative should shift from cash burn to revenue lock-in, providing a firmer foundation for the stock to re-test prior highs.
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Just For You: Elon Warns “America Is Broke”. Trump’s Plan Inside. (From American Hartford Gold)
