Oracle’s Financial Surge and AI Focus
The surprising stock rally added more market capitalization in one day than McDonald’s entire valuation, driven by Oracle’s new identity as an AI powerhouse. The company has positioned itself as the go-to infrastructure provider for major AI players, investing heavily in data centers, cloud computing, and processing power. Oracle now reports nearly $500 billion in backlogged orders mostly from AI companies reflecting massive demand for computing capacity. Investors have been quick to draw parallels to Nvidia’s meteoric rise, seeing Oracle as the next major infrastructure winner in the AI boom.

But there’s a growing concern behind the excitement. Much of the AI-related revenue is concentrated in a handful of clients. Roughly $455 billion in AI contracts accounts for more than 2% of the U.S. GDP a staggering figure that many analysts view as unsustainable. The majority of this revenue stems from just four deals with three customers, including OpenAI, which alone plans to spend over $300 billion with Oracle. Critics note that OpenAI doesn’t currently have the capital to meet that commitment without significant new funding. Nvidia’s recent $100 billion investment in OpenAI underscores how intertwined and financially fragile these relationships are.

Influence Over TikTok and Media Expansion
While Oracle’s tech ambitions dominate headlines, its reach now extends into the media world. Following U.S. government mandates requiring ByteDance to divest TikTok’s American assets, Oracle is expected to take control of TikTok’s U.S. operations, including access to sensitive user data and the app’s algorithm management. This move raises serious concerns about the concentration of digital power and data control, especially as Oracle transitions from cloud provider to content gatekeeper. TikTok’s reported U.S. valuation of $14 billion seems low compared to its massive user base and influence, particularly when stacked against competitors like Instagram and YouTube.

At the same time, Ellison’s influence is growing in entertainment through his son, David Ellison, the founder of Skydance Media. Skydance has already acquired Paramount and is in talks to purchase Warner Brothers a move that could consolidate unprecedented media power under a single family’s control. Backed by Larry Ellison’s deep pockets, Skydance’s rapid expansion is reshaping the entertainment industry from the inside out, blurring the lines between tech infrastructure and media production.

Media Consolidation and Political Influence
The intertwining of Oracle, Skydance, and government interests has sparked debate over the balance of power in American media and technology. The Ellisons’ expanding footprint spanning cloud computing, artificial intelligence, social media, and now Hollywood echoes the influence once wielded by figures like Rupert Murdoch and Mark Zuckerberg. With Oracle powering data infrastructure and Skydance shaping cultural narratives, the family’s dual influence could reshape both what people see and how they see it.

Future Implications and Concerns
As Larry Ellison, now in his 80s, remains at the helm of Oracle, questions arise about succession and the consolidation of power. The potential handoff to the next generation, led by David Ellison, could unite one of the most powerful tech and media portfolios ever assembled. Analysts warn that this level of control spanning cloud data, AI infrastructure, and entertainment media could reshape both markets and policy, creating a feedback loop of influence that few companies could rival.

Conclusion
Oracle’s transformation from enterprise software provider to AI and media powerhouse marks a defining shift in modern capitalism. The company’s soaring valuation and growing ties to both TikTok and Hollywood reflect a new kind of conglomerate one that blends technology, content, and politics in ways that challenge traditional market boundaries. Whether this represents innovation or overreach remains to be seen, but one thing is clear: the Ellisons’ expanding empire is poised to rival giants like Disney, Meta, and Google in both reach and influence.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

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