Oracle names co-CEOs to steer cloud-and-AI push as TikTok deal looms

Oracle named Clay Magouyrk and Mike Sicilia as co-CEOs on Monday, replacing Safra Catz, who will remain as executive vice chair of the board. The leadership change, announced as talks over TikTok’s U.S. operations intensify, underscores Oracle’s growing emphasis on cloud infrastructure and AI services. The two insiders have long held key roles at Oracle: Magouyrk as president of Oracle Cloud Infrastructure and Sicilia as head of cloud-based applications and AI products. The promotion signals Oracle’s intent to accelerate its cloud and AI growth engine while preserving continuity at the top, with founder Larry Ellison staying involved as chief technology officer.

Catz, who has led Oracle since 2014 after joining the company in 1999, helped transform Oracle from a traditional database provider into a cloud powerhouse. Her tenure has been marked by aggressive data-center expansion and a push into AI-enabled services, enabling Oracle to compete head-to-head with Microsoft and Alphabet for large, enterprise-scale cloud deals. Investors have rewarded the company for its AI-driven strategy: Oracle’s shares have surged more than 586% over her 11-year tenure, and the stock has rallied roughly 85% this year amid the broader AI boom. The company’s market capitalization has hovered near the trillion-dollar mark as Oracle has positioned itself as a leading force in the critical data-center and cloud infrastructure space. Oracle also reaffirmed its financial forecast this month, saying booked revenue for its Oracle Cloud Infrastructure business is expected to exceed half a trillion dollars.

Magouyrk, 39, leads Oracle Cloud Infrastructure, the company’s underlying cloud platform that powers its applications. Sicilia, 54, runs cloud-based applications and AI products, including Oracle’s consumer- and enterprise-facing software offerings. The two executives’ responsibilities align with Oracle’s strategy to grow its Cloud and Industry units as primary growth levers, a point analysts highlighted in a note about the leadership change. “Investors are already familiar with both Mr. Magouyrk and Mr. Sicilia and that their promotions solidify the importance of the Cloud and Industry businesses as the growth levers for the company,” Evercore ISI analysts said.

The shift comes as Oracle sits at the center of high-stakes conversations about TikTok’s future in the United States. Reuters has reported that data for American users would be stored on Oracle’s cloud infrastructure, a key element in the ongoing negotiations over the app’s continued access to the U.S. market. Separately, Oracle has reportedly inked a major cloud deal with OpenAI, under which the ChatGPT maker is expected to buy roughly $300 billion in computing power from Oracle over about five years. The OpenAI arrangement underscores Oracle’s bid to become a central platform for AI workloads in the enterprise.

The leadership change also fits a broader industry trend where multiple organizations have experimented with dual-CEO structures to handle increasing scope and executive responsibilities. Analysts noted that co-CEO formats are becoming more common as companies pursue diversification across cloud, AI products, and data services. Notable examples cited in industry discussions include Intel, which appointed two interim CEOs before final leadership settled, and investment firm KKR, which is led by co-CEOs Joseph Bae and Scott Nuttall.

In a move designed to ensure continuity during a period of rapid growth in cloud and AI initiatives, Ellison remains Oracle’s chief technology officer, and Catz will stay on as executive vice chair. Oracle’s management emphasized that the transition should be smooth in the near term, while the company continues to pursue aggressive cloud and AI expansion. The company also restated its optimism about the Oracle Cloud Infrastructure business’s trajectory, reiterating guidance that OCI’s booked revenue will exceed half a trillion dollars and continuing to drive Oracle’s stock to record levels as investors weigh the AI-enabled growth potential.

The appointment of Magouyrk and Sicilia signals Oracle’s intent to maintain velocity in its cloud infrastructure and AI product lines at a moment when competition for enterprise AI workloads is intensifying. The company’s AI-focused initiatives, large-scale cloud deals, and partnerships with leading AI developers position Oracle as a pivotal platform for processing and deploying AI applications across industries. As TikTok’s U.S. fate and OpenAI’s cloud commitments shape the near-term outlook, Oracle’s leadership transition is being watched as a barometer of how the company intends to translate AI opportunity into sustained revenue and market leadership.