Tencent leases 100,000 chips from Oracle to accelerate AI push, reportedly
Tencent reportedly agreed to a five-year lease for about 100,000 AI chips from Oracle across data centers in Southeast Asia. The deal is estimated at about $7 billion, with an upfront payment of about 30%.
1. Five-year chip lease
Tencent signed what the article describes as its largest overseas lease deal with Oracle to access about 100,000 advanced AI chips that were not available in China. The agreement covers multiple Oracle data centers in Southeast Asia and is estimated to be worth about $7 billion, with an upfront payment of about 30%, the report said.
2. AI expansion
The deal comes as Tencent increases investment in developing and deploying large language models. The company recently released a preview of an AI image-generation model for professional creators, with text-to-image and image-to-image capabilities.
3. Chip supply constraints
Chinese firms have been seeking AI chips as US export curbs tighten and Beijing promotes home-grown alternatives to US technology providers.
