To The Moon

$Oracle(ORCL)$

Oracle has emerged as one of the most surprising stars of the AI boom. Long considered a “legacy” software vendor, the company is now at the center of Wall Street’s most intriguing narrative — what investors have dubbed the “Oracle Flywheel.”

In short, the idea is that Oracle has stumbled upon a near-infinite feedback loop of value creation, fueled by its partnership with OpenAI and visionary founder Larry Ellison’s strategic bets.

The sequence looks like something out of a video game:

1. OpenAI signs a $300 billion GPU hosting deal with Oracle.

2. Oracle’s valuation jumps, and Larry Ellison personally gains nearly $100 billion on paper before any GPUs even ship.

3. Larry reinvests part of his fortune into OpenAI’s rumored $1 trillion funding round.

4. OpenAI funnels that capital back into Oracle’s GPU infrastructure.

5. Oracle’s revenues grow again, its stock price rallies, and Ellison’s net worth climbs another $100 billion.

6. The cycle repeats — the Flywheel goes brrr.

Now, with speculation swirling that Oracle may also take a stake in TikTok — based on recent tweets by former President Donald Trump — the question becomes: is Oracle rewriting its destiny as a true 21st-century tech titan?

Oracle’s Transformation: From Legacy to AI Backbone

For decades, Oracle was synonymous with enterprise databases and back-office software. While profitable and entrenched, the company carried a reputation as a “slower-moving” incumbent compared to cloud-native peers like Amazon AWS or Microsoft Azure.

But Larry Ellison has quietly been building a different vision. Oracle poured resources into building high-performance cloud infrastructure optimized for AI workloads, betting that traditional hyperscalers wouldn’t fully meet the needs of AI giants.

That bet appears to be paying off. The OpenAI hosting partnership effectively positioned Oracle as the infrastructure layer for one of the most disruptive companies of the decade. Unlike NVIDIA, which sells the chips, Oracle provides the cloud environment to make those chips useful at scale.

The beauty of the Flywheel is that it monetizes AI demand without Oracle needing to reinvent itself as a chipmaker or consumer AI brand. Instead, Oracle is becoming the “AI landlord” — leasing out GPU horsepower to the biggest names in artificial intelligence.

The Flywheel Explained: A Loop of Infinite Capital

The mechanics of the Oracle Flywheel are simple, but powerful:

• Step 1: OpenAI raises massive amounts of capital to fund growth.

• Step 2: A significant chunk of that capital is spent on GPU infrastructure hosted by Oracle.

• Step 3: Oracle reports soaring revenues, and its stock price rises.

• Step 4: Larry Ellison, as a major shareholder, sees his wealth surge.

• Step 5: Larry reinvests into OpenAI, restarting the cycle.

It’s a self-reinforcing loop, where Oracle benefits not just from selling infrastructure, but from the very act of recycling capital back into its top customer.

This flywheel could extend well beyond OpenAI. If the model proves successful, other AI labs may follow suit, anchoring Oracle as a preferred partner for high-compute AI deployments.

TikTok Rumors: The Consumer Wild Card

While the Flywheel story alone is enough to fuel excitement, a new rumor has entered the mix: Oracle could take a stake in TikTok if regulatory and political pressure forces a divestiture of its U.S. operations.

The speculation gained steam after former President Donald Trump tweeted that Oracle could play a central role in TikTok’s future. It wouldn’t be the first time Oracle was linked to TikTok — back in 2020, during the first round of U.S. scrutiny, Oracle proposed becoming TikTok’s “trusted technology partner.”

There are two reasons this rumor makes sense today:

1. Cloud Hosting Tie-In: Oracle already provides cloud infrastructure for TikTok in the U.S. A stake would deepen the relationship and secure future revenue streams.

2. Strategic Leverage: By owning part of TikTok, Oracle could extend its influence beyond enterprise and AI into consumer tech, a category it has traditionally avoided.

Of course, a TikTok deal would be politically charged. It could attract regulatory oversight, data privacy debates, and geopolitical tension with China. Still, for Oracle, the upside would be cementing its role as a trusted intermediary between Washington and global consumer platforms.

Bull vs. Bear Case for Oracle

With Oracle’s stock already on a tear, investors are asking: is it too late to buy?

The Bull Case

• AI Supercycle: Oracle is a key beneficiary of AI demand, with its infrastructure positioned for hyperscale workloads.

• Flywheel Growth: The OpenAI partnership creates recurring, compounding growth as capital flows back into Oracle.

• Moat Expansion: A TikTok stake could lock in long-term hosting revenues and broaden Oracle’s relevance in consumer-facing tech.

• Larry Factor: Ellison’s personal wealth and conviction make Oracle unusually aligned with its founder’s vision.

The Bear Case

• Customer Concentration: The Flywheel depends heavily on OpenAI’s success. If OpenAI loses ground to Anthropic, xAI, or other challengers, Oracle’s growth loop weakens.

• Valuation Risk: After the recent rally, Oracle trades at multiples higher than its historical norms. If AI hype cools, the stock could correct sharply.

• Regulatory Scrutiny: A TikTok stake could draw Oracle into political battles it has largely avoided so far.

• Execution Risk: Scaling cloud infrastructure to meet $300 billion+ demand is no small feat. Any stumbles could hurt credibility.

Is It Too Late to Jump On Board?

This is the million-dollar question. Oracle has already rewarded early believers handsomely, with shares outperforming broader tech indices in 2025. But whether there’s still room left depends on how much investors believe in:

1. The durability of the AI supercycle — are we still in early innings, or is peak hype near?

2. Oracle’s ability to scale its cloud infrastructure profitably, without margin erosion.

3. The potential for new catalysts like TikTok or partnerships with other AI labs.

For investors, Oracle now represents a blend of old-world cash flow reliability and new-world AI optionality. That mix is rare — and explains why some see it as a must-own stock, even at elevated valuations.

Final Thoughts

Oracle’s story in 2025 is no longer about databases. It’s about whether a 47-year-old software giant has found a way to reinvent itself as a cornerstone of the AI economy. The Flywheel narrative captures the imagination because it suggests infinite compounding — AI demand feeding into Oracle, Oracle wealth feeding back into AI, and the cycle repeating.

A potential TikTok stake would add an unexpected twist, pushing Oracle into consumer tech and geopolitics. That could be risky, but it also positions Oracle as a uniquely strategic company bridging enterprise infrastructure, AI, and social media.

For now, investors must decide: 👉 Are you bullish on Oracle’s Flywheel, or do you see it as hype-driven? 👉 Would a TikTok stake meaningfully enhance Oracle’s value, or is it a distraction? 👉 And ultimately — is it too late to jump in, or is Oracle just getting started?