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Oracle<\/a> Corp. warned investors that a new law potentially banning TikTok in the US threatens to hurt its financial results.<\/p>\n The law signed by President Joe Biden in April \u201cwill make it unlawful to provide internet hosting services to TikTok\u201d unless certain steps are taken by its China-based owners, Oracle wrote Thursday in a regulatory filing. \u201cIf we are unable to provide those services to TikTok, and if we cannot redeploy that capacity in a timely manner, our revenues and profits would be adversely impacted.\u201d Compliance with the new law may also increase expenses, the company added.<\/p>\n TikTok uses Oracle\u2019s cloud infrastructure to store and process US user data, and is considered by many Wall Street analysts to be one of the Austin-based company\u2019s largest customers for that closely watched business. \u201cOracle could lose a sizable portion of revenue associated with hosting the bulk of TikTok\u2019s US business,\u201d Derrick Wood, an analyst at TD Cowen<\/a>, wrote in April.<\/p>\n Oracle\u2019s annual revenue from the popular video app may be in the range of $480 million to $800 million, estimated Kirk Materne, an analyst at Evercore<\/a> ISI. The company\u2019s unit that rents computing power and storage generated about $6.9 billion in sales in the year ended May 31. The growing cloud infrastructure business, fueled by demand for artificial intelligence work, has helped propel Oracle\u2019s shares to a 34% gain this year through Friday\u2019s close.<\/p>\n Oracle didn\u2019t respond to a request for comment.<\/p>\n US lawmakers have long been concerned that TikTok\u00a0poses a security threat<\/a>\u00a0to US users because China requires its companies, upon request, to share any national security-related data with the government. The law signed in April gives TikTok 270 days to find a buyer or be banned in the US, with some possibility of an extension.<\/p>\n TikTok has pushed back on these concerns, suing to\u00a0overturn<\/a>\u00a0the law. As part of its defense in recent years, TikTok has invoked\u00a0its work<\/a>\u00a0with Oracle to cordon off US data from its Chinese parent, ByteDance Ltd. The initiative, dubbed \u201cProject Texas,\u201d was named after the state of Oracle\u2019s headquarters.<\/p>\n Still, Oracle has traditionally been mute on its relationship with TikTok \u2014 it doesn\u2019t list the company among its flagship cloud\u00a0customer successes<\/a>. In 2020, when the US first pressed ByteDance to sell the app to a US buyer, Oracle was among those considering a deal. The company at that time declined to answer any questions about its relationship with TikTok.<\/p>\n If TikTok is sold, replacing Oracle as a cloud vendor would likely be a very low priority, Materne wrote.<\/p>\n<\/div>\n\nSubscribe to the Fortune Next to Lead newsletter to get weekly strategies on how to make it to the corner office. Sign up for free<\/a>.<\/div>\n