Oracle terminates $7 billion AI chip leasing deal with Tencent
Oracle has reportedly scrapped a five-year agreement to provide Tencent access to 100,000 advanced AI chips following pressure from the U.S. government.
Oracle has ended a planned $7 billion deal to lease advanced artificial intelligence computing power to Chinese technology firm Tencent. The agreement, which would have spanned five years, involved providing access to approximately 100,000 high-performance chips located in Oracle-operated data centers throughout Southeast Asia.
The cancellation follows scrutiny from U.S. officials regarding the arrangement, according to reports citing concerns over technology exports. The intervention underscores the increasing geopolitical tension surrounding the global distribution of advanced hardware capable of training large-scale AI models.
Separately, Tencent has faced domestic pressure in China, with local officials in Guangdong reportedly urging the company to prioritize the use of domestically produced chips. Neither Oracle nor Tencent has provided official confirmation regarding the termination of the agreement.