Oracle (ORCL 4.06%) has soared into the limelight in recent weeks, emerging as one of the potential big winners in the artificial intelligence (AI) boom. The company, most known for its database management system, has put the focus on AI infrastructure in recent years, and that's been a smart move. Customers have rushed to Oracle for capacity, driving a surge in revenue.

This clearly is an expansion of Oracle's original business, and now it looks as if this tech giant may be expanding further: Oracle, as part of a consortium, may take a stake in TikTok, according to press reports. China's ByteDance, TikTok's owner, has been under pressure from the U.S. to divest its U.S. business or face a shutdown in the country.

Now, with the possibility of Oracle getting in on TikTok, here's what investors should know.

A view of several people's hands, from below, as they hold phones and look at something on them.

Image source: Getty Images.

A potential security risk

First, though, a bit of background. ByteDance's troubles in the U.S. aren't new, and they stem from the concern that China could potentially order the company to turn over data -- and that would result in U.S. TikTok user data falling into the hands of the Chinese government. U.S ownership of that part of the business would avoid this possible problem.

So, last year, Congress passed a bill saying TikTok would be banned from the U.S. unless the company divested its U.S. TikTok business. Deadlines were set, but President Donald Trump has extended them four times, with the latest extension being this week -- the ban didn't take effect this Wednesday and instead will be enforced as of Dec. 16.

And this brings me to the latest news on the TikTok situation. An investor consortium including Oracle and Silver Lake will take ownership of the U.S. TikTok business as part of a "framework deal," according to CNBC. The Wall Street Journal reported that 80% of that business would be owned by this consortium, and U.S. users would turn to a new app to access TikTok. The deal is on track to close within 30 to 45 days.

Oracle already has some involvement with TikTok -- in 2022, due to the U.S.' security concerns, TikTok moved its U.S. data to the Oracle cloud, and that agreement is set to continue.

How a TikTok deal could benefit Oracle

Further information regarding the new deal between ByteDance and the consortium of investors isn't available, but we could imagine how an investment in TikTok might impact Oracle. TikTok could rely more heavily on Oracle's cloud services, and Oracle, as a TikTok owner, may benefit from TikTok's advertising revenue -- and Oracle's expertise in data management and analysis might eventually boost advertising capabilities.

TikTok generated $10 billion in U.S. revenue last year, and the platform has 170 million U.S. users, according to BackLinko, so a share in this could represent an interesting opportunity for Oracle. And since Oracle is in the phase of spending to support AI infrastructure growth, any additional income could come in handy. Finally, involvement with TikTok offers Oracle the chance to show its expertise in other areas beyond its traditional businesses.

All of this is positive -- but does this make Oracle a buy? I see the potential TikTok agreement as an additional revenue opportunity, and one that adds more diversification to Oracle's business, but I wouldn't buy Oracle specifically for this potential agreement with ByteDance. We don't yet know all of the details, and while the deal may offer Oracle's business a boost, it still may represent a small part of the full Oracle story.

Oracle's biggest growth opportunity

Instead, it's important to look to the company's biggest growth area right now, and that's cloud infrastructure. In the recent quarter, that business delivered a 55% increase in revenue to more than $3 billion. And the company predicts that unit will generate $18 billion in revenue for the full year -- and grow to $144 billion four years from now.

So, right now and moving forward, the biggest opportunity for Oracle remains the AI business, and that should help supercharge revenue in the quarters and years ahead.

Of course, it's important to keep an eye on the TikTok deal, and this may represent another reason to buy Oracle shares -- but with or without this opportunity, Oracle is hitting it out of the park in the world of AI, and that's the real reason to get in on this tech stock today.