Oracle is facing two separate dramas in Washington. One involves saving TikTok from a U.S. ban, while the other focuses on Oracle’s financial capabilities to support the AI boom. ByteDance has agreed to a deal giving American investors control of TikTok’s U.S. operations, with Oracle handling security and cloud services.

However, Oracle’s $10 billion AI data center project in Michigan, meant to fuel OpenAI, has hit a snag as a major financing partner pulled out. This caused Oracle’s shares to drop temporarily, highlighting concerns about its expanding debt burden.

The deal with TikTok marks a significant achievement for Oracle as it positions itself as a key player in U.S. digital infrastructure for AI and social media. However, the company must make substantial long-term investments to maintain this position.

The TikTok deal includes a new company in Texas, majority American board members, and Oracle’s oversight of a secure cloud environment for user data. The joint venture is expected to have its own control over data protection, algorithm security, content moderation, and software assurance.

Despite the positive aspects of the TikTok deal for Oracle, the company is facing challenges with its $10 billion AI data center project in Michigan. A major financing partner pulled out, leading to a drop in Oracle’s shares and scrutiny over its debt burden.

Overall, Oracle is navigating political and tech risks to secure its position in the digital landscape. The company’s involvement in the TikTok deal showcases its commitment to digital sovereignty and security, while challenges with the AI data center project highlight the financial strain Oracle faces in its expansion efforts.

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