Oracle reportedly abandons $7 billion Tencent AI deal under Trump pressure
Oracle canceled a multibillion-dollar chip-leasing contract with Tencent after US officials raised concerns, the Financial Times reported. The deal was estimated at $7 billion and would have given Tencent access to about 100,000 advanced AI chips.
1. Deal reportedly canceled
Oracle canceled a multibillion-dollar chip-leasing contract with Tencent after US officials approached Oracle with concerns about the deal, a newspaper reported, citing people familiar with the matter. The report said top officials in Guangdong also visited Tencent and asked it to support domestic Chinese chips.
2. Terms of the deal
The deal, estimated at $7 billion, would have given Tencent access to about 100,000 advanced AI chips that were not available in China because of restrictions from Washington and Beijing. Tencent had agreed to a five-year lease across multiple Oracle data centers in Southeast Asia, the report said.
