Trump Pressure Forces Oracle to Cancel $7 Billion Tencent AI Chip Deal
Oracle has terminated a multibillion-dollar chip leasing agreement with Tencent following pressure from the Trump administration, as reported by source on Wednesday. US officials have engaged with Oracle to express apprehensions regarding the Tencent deal, as reported by sources. Tencent also received visits from top officials in Guangdong, where the group is based, who asked the company to support domestic Chinese chips, the report said.
Source reported last month that Tencent signed its largest overseas lease deal, valued at an estimated $7 billion, with Oracle. The agreement would have provided Tencent with access to approximately 100,000 advanced AI chips that are currently unavailable in China due to restrictions imposed by Washington and Beijing, as per the report. Tencent has entered into a five-year lease agreement encompassing several Oracle data centers located in Southeast Asia, as indicated in the report.
