Oracle cancels $7B AI chip lease with Tencent amid US concerns: FT
mtcurado
- Oracle (ORCL) has scrapped a multibillion-dollar chip leasing contract with Tencent (TCEHY) after bowing to pressure from the Trump administration, the Financial Times reported on Wednesday.
- US officials approached Oracle to raise concerns about the Tencent deal, the report said. The deal was estimated to be worth about $7B, with an upfront payment of about 30%.
- Tencent signed its largest overseas lease deal with US cloud provider Oracle to access about 100,000 advanced AI chips that were not available in China, the Financial Times reported in September. The Chinese technology giant this year agreed to a five-year lease across multiple Oracle data centers in Southeast Asia.
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