REDWOOD SHORES (dpa-AFX) - Tech major Oracle Corp. (ORCL), which offers cloud infrastructure to TikTok, reportedly said that a temporary weather-related power outage at an Oracle data center caused the issues faced by U.S. users of the social media app.
Reuters reported quoting Oracle spokesperson Michael Egbert's email that the challenges U.S. TikTok users may be experiencing were the result of technical issues that followed the power outage.
Over the weekened, TikTok users across multiple regions in the US faced widespread service outage. They complained about not being able to login to the app, and also to load the videos.
The companies said they were working to quickly resolve the major infrastructure issue.
Last week, TikTok's Chinese owner, ByteDance, had finalized a deal to set up a majority U.S.-owned joint venture, TikTok USDS Joint Venture LLC, to avert a ban on the short video app used by more than 200 million Americans. The majority American board for TikTok's U.S. operations is closely aligned with President Donald Trump. Oracle co-founder Larry Ellison, a longtime Trump ally, is central to the new ownership structure.
A 2024 bipartisan law had required TikTok's China-based parent company to sell the app or face a U.S. ban due to national security concerns.
Oracle closed Tuesday's regular trading 4.1 percent lower at $174.90. In the overnight trading, the shares were gaining 1.1 percent to trade at $176.76.
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