Oracle cancels $7 billion Tencent AI chip deal under Trump pressure

Oracle has canceled a $7 billion, five-year chip leasing deal with Tencent following intervention from the Trump administration and Chinese government officials. The agreement would have granted Tencent remote access to about 100,000 advanced Nvidia AI chips housed in Southeast Asian data centers, bypassing U.S. technology export controls. Officials from Guangdong also pressured Tencent to prioritize domestic Chinese hardware.

Oracle's canceled chip deal with Tencent

• ▪Oracle canceled a $7 billion chip leasing contract with Tencent after U.S. officials under the Trump administration directly expressed concerns about the $7 billion chip leasing contract
• ▪The canceled five-year Oracle-Tencent agreement would have provided Tencent access to approximately 100,000 advanced AI chips

Chinese firms using foreign data centers

• ▪Chinese technology firms have become major customers for data centers operating across Southeast Asia to secure computing capacity
• ▪Chinese AI developers rent access to restricted Nvidia artificial intelligence accelerators in foreign data centers to bypass U.S. export controls