Tencent leases 100,000 AI chips from Oracle
Tencent has signed a deal with Oracle Cloud Infrastructure to lease approximately 100,000 AI chips abroad. The move aims to navigate China's export restrictions.
Chinese technology giant Tencent has entered into its largest reported overseas lease deal with Oracle Cloud Infrastructure, according to sources familiar with the matter. The agreement will grant Tencent access to around 100,000 advanced AI chips, which have been difficult to procure within China.
The deal reportedly leverages a loophole in U.S. export controls. While the U.S. has barred the sale of its most advanced AI chips, such as those from Nvidia, to China, these regulations have primarily focused on physical shipments rather than imposing clear limits on remote cloud access.
Tencent, which has unveiled its own large foundation model, Hunyuan, offers it through Tencent Cloud. This lease agreement is expected to support both its model development and its broader cloud business.
For Oracle, the commitment aligns with its strategy to expand its AI cloud offerings. However, the arrangement may attract further scrutiny from Washington, where lawmakers are seeking to close gaps in export controls related to advanced AI computing power.