Oracle cancels $7 billion AI chip leasing deal with Tencent after US pressure
Oracle has scrapped a five-year, $7 billion contract to lease around 100,000 advanced artificial intelligence chips to Tencent following pressure from the Trump administration, according to the Financial Times.
Oracle has canceled a five-year agreement valued at roughly $7 billion to lease approximately 100,000 advanced artificial intelligence chips to Chinese tech giant Tencent, according to a report by the Financial Times. The scrapped contract would have served as Tencent's largest overseas chip leasing arrangement.[1][2][4][5]
Under the planned framework, the chips would have been hosted in Oracle data centers in Southeast Asia. The setup was designed to give Tencent access to advanced computing processors that are unavailable inside mainland China because of U.S. and Chinese restrictions.[4]
The cancellation came after U.S. officials approached Oracle with concerns regarding the transaction, prompting the company to yield to pressure from the Trump administration. Tencent simultaneously faced domestic scrutiny, with senior Chinese officials visiting the company to urge support for domestic chipmakers.[1][3][4][5]
Although overseas leasing of AI chips remains permitted under existing regulatory rules, the partnership was abandoned amid increasing geopolitical tensions facing American AI infrastructure providers dealing with Chinese firms. Oracle, Tencent, and the White House have not publicly commented on the cancellation.[4][5]
Key facts
- Oracle scrapped a five-year AI chip leasing contract with Tencent valued at approximately $7 billion, according to the Financial Times.
- The deal would have provided Tencent access to around 100,000 advanced AI chips hosted in Oracle data centers across Southeast Asia.
- The transaction would have been Tencent's largest overseas chip leasing agreement.
- The arrangement aimed to supply hardware unavailable within China due to U.S. and Chinese trade restrictions.
- The cancellation followed pressure from the Trump administration after U.S. officials raised concerns with Oracle.
- Senior Chinese officials visited Tencent to urge the firm to support domestic chipmakers.
- Overseas AI chip leasing is still permitted under existing regulations.
- Oracle, Tencent, and the White House have not publicly commented on the matter.
Sources · 5 sources
- TE
Techmeme@TechmemePost on X ·
Sources: Oracle has scrapped a ~$7B, five-year deal to lease ~100K advanced AI chips to Tencent after yielding to pressure from the Trump administration (Financial Times) (Visit Techmeme dot com for the link and full context!)
Open source - FT
Financial Times@FTPost on X ·
Oracle cancels $7bn Tencent AI deal under Trump pressure https://t.co/q1Z9kbpf74
Open source - AG
AGTP@AGTPinsightsPost on X ·
BREAKING: Oracle has canceled a $7 billion AI deal with Tencent after pressure from the Trump administration. https://t.co/sZ385i1QLw
Open source - WS
Wall St Engine@wallstenginePost on X ·
Oracle $ORCL has reportedly canceled a $7B AI chip leasing deal with Tencent following pressure from the Trump administration, according to the FT. The five-year agreement would have given Tencent access to as many as 100,000 advanced AI chips across Oracle data centers in Southeast Asia, making it Tencent's largest overseas chip leasing deal. The arrangement would have allowed Tencent to use advanced computing hardware unavailable inside China because of U.S. and Chinese restrictions. U.S. officials reportedly approached Oracle with concerns about the agreement. Meanwhile, senior Chinese officials visited Tencent and urged the company to support domestic chipmakers. Although overseas AI chip leasing remains permitted under existing rules, the deal has now been canceled following pressure from both Washington and Beijing. Oracle, Tencent, and the White House have not publicly commented on the reported cancellation.
Open source - TE
TechmemeArticle ·
Sources: Oracle has scrapped a ~$7B, five-year deal to lease ~100K advanced AI chips to Tencent after yielding to pressure from the Trump administration (Financial Times) Financial Times : Sources: Oracle has scrapped a ~$7B, five-year deal to lease ~100K advanced AI chips to Tencent after yielding to pressure from the Trump administration — Intervention comes amid growing tension for US AI infrastructure groups doing business with Chinese tech giants.
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