Oracle cancels its approximately US dollar 7 billion AI chip leasing agreement with Tencent

Reuters, citing the Financial Times on November 4, reported that Oracle has terminated a chip-leasing agreement with Tencent valued at approximately $7 billion—the largest overseas leasing contract Tencent has signed to date. The five-year deal covered multiple Oracle data centers across Southeast Asia and was designed to supply Tencent with roughly 100,000 advanced AI chips—components previously unavailable for direct procurement in China due to U.S. export controls targeting China. According to the Financial Times, U.S. officials had raised concerns about the transaction with Oracle, and Oracle ultimately abandoned the agreement under pressure from the Trump administration. Separately, it was reported that Tencent hosted senior officials from Guangdong Province around the same time, who explicitly urged the company to bolster support for domestically produced chips. Reuters stated it was unable to immediately verify the details; neither Oracle, Tencent, nor the White House responded to Reuters’ requests for comment.