Oracle reportedly abandons $7 billion Tencent AI deal under Trump pressure
ORCL•Oracle reportedly canceled a multibillion-dollar chip-leasing contract with Tencent after US officials raised concerns. The deal was estimated at $7 billion and would have provided Tencent access to about 100,000 advanced AI chips through a five-year lease.
1. Deal reportedly canceled
Oracle canceled a multibillion-dollar chip-leasing contract with Tencent after US officials approached the company to raise concerns, the Financial Times reported. Reuters said it could not immediately verify the report.
2. Lease details
The deal was reportedly worth an estimated $7 billion and would have given Tencent access to about 100,000 advanced AI chips unavailable in China because of curbs from Washington and Beijing. Tencent had agreed to a five-year lease across multiple Oracle data centers in Southeast Asia.
3. Pressure on Tencent
Top officials in Guangdong, where Tencent is based, also reportedly visited the company and asked it to support domestic Chinese chips. Oracle, Tencent and the White House did not respond to requests for comment.
