Oracle Cancels $7 Billion Chip Lease Agreement with Tencent
Oracle has canceled a roughly $7 billion AI chip leasing agreement with Tencent. U.S. officials had expressed concerns to Oracle, which subsequently faced pressure from the Trump administration. The deal originally called for Tencent to lease about 100,000 advanced AI chips, with an initial payment covering around 30% of the cost. Tencent signed the five-year leasing agreement this year, planning to access chips unavailable in China through multiple Oracle data centers in Southeast Asia.
Oracle Cancels $7 Billion Chip Lease Agreement with Tencent
Oracle has canceled a roughly $7 billion AI chip lease agreement with Tencent. U.S. officials had expressed concerns about the deal to Oracle, which subsequently came under pressure from the Trump administration. The agreement was originally planned to have Tencent lease approximately 100,000 advanced AI chips, with an initial payment covering about 30% of the total.
Tencent signed this five-year lease agreement earlier this year, intending to access chips unavailable in China through Oracle's data centers in Southeast Asia.
Source: TradingView
https://www.tradingview.com/news/seekingalpha:e51e68f4d094b:0-oracle-cancels-7b-ai-chip-lease-with-tencent-amid-us-concerns-ft/