Oracle shares surged 6% in pre-market trading on Friday after TikTok’s U.S. agreement helped ease concerns about AI-driven valuation risks following a volatile week for markets.

Oracle (ORCL) rose to around $190 after Bloomberg reported that TikTok had signed binding agreements to form a new U.S. joint venture led by Oracle. The deal reassured investors that AI exposure is tied to tangible, large-scale workloads rather than speculative hype.

The positive sentiment extended across risk assets. Bitcoin climbed above $88,000, while Invesco QQQ (QQQ) futures, which track the Nasdaq-100, rose about 0.5%. AI-focused mining stocks also benefited, with IREN gaining roughly 4%, Cipher Mining (CIFR) up around 4%, and CoreWeave (CRWV) jumping about 6%.

Under the agreement, Oracle will serve as the primary cloud infrastructure and data security provider, overseeing the retraining and operation of TikTok’s AI recommendation systems on U.S.-based data. Markets interpreted this as a vote of confidence in Oracle’s AI capabilities and its ability to handle large-scale enterprise workloads.

The news comes after a challenging period for AI hyperscalers such as Oracle and CoreWeave. Shares had been pressured by concerns over the sustainability of heavy AI infrastructure spending, debt-financed data center buildouts, delayed projects, and the viability of partnerships, making the TikTok deal a welcome validation for investors.