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Oracle abandons $7 billion Tencent AI deal under Trump pressure, FT reports - Finance news and analysis from Global Banking & Finance Review
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Oracle abandons $7 billion Tencent AI deal under Trump pressure, FT reports

Published by Global Banking & Finance Review

Posted on November 4, 2026

2 min read

· Last updated: November 4, 2026

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Oracle Cancels $7 Billion Tencent AI Chip Leasing Deal Under US Pressure

Oracle Abandons Major Chip Leasing Agreement with Tencent Amid Political Pressure

Nov 4 (Reuters) - Oracle has canceled a multibillion-dollar chip leasing contract with Tencent after bowing to pressure from the Trump administration, the Financial Times reported on Wednesday.

US Government Intervention

• US officials approached Oracle to raise concerns about the Tencent deal, the newspaper said, citing people familiar with the matter

Chinese Government Response

Local Officials Urge Support for Domestic Chips

• Tencent also received visits from top officials in Guangdong, where the group is based, who asked the compnay to support domestic Chinese chips, the report said

Report Verification and Responses

Lack of Official Comments

• Reuters could not immediately verify the report. Oracle, Tencent and the White House did not respond to Reuters requests for comment on the report

Details of the Canceled Deal

Scale and Value of the Agreement

• The Financial Times reported last month that Tencent signed its largest overseas lease deal, worth an estimated $7 billion, with Oracle

Access to Advanced AI Chips

• The deal would have given Tencent access to about 100,000 advanced AI chips that were not available in China due to curbs from Washington and Beijing, according to the report

Lease Terms and Data Center Locations

• Tencent had agreed to a five-year lease across multiple Oracle data centers in Southeast Asia, according to the report

Reporting Credits

(Reporting by Shivani Tanna in Bengaluru; Editing by Janane Venkatraman)

Key Takeaways

  • The originally reported deal involved Tencent leasing ~100,000 advanced AI chips from Oracle across multiple Southeast Asian data centers, valued at ~$7 billion with ~30% paid upfront. (investing.com)
  • Reuters noted Oracle and Tencent did not comment, nor did its filings mention the deal—its existence remains based on FT reporting via unnamed sources. (financefeeds.com)
  • The cancellation, reportedly under pressure from the Trump administration, reflects growing U.S. scrutiny of cloud-based chip leases used to bypass export controls—a policy area lawmakers are watching closely. (tomshardware.com)

References

Frequently Asked Questions

Why did Oracle cancel its $7 billion deal with Tencent?
Oracle canceled the deal due to pressure from the Trump administration over concerns about advanced AI chip technology access.
What was the value of the Oracle-Tencent AI chip leasing contract?
The chip leasing contract between Oracle and Tencent was reported to be worth approximately $7 billion.
Which technology was involved in the Oracle-Tencent agreement?
The agreement involved leasing about 100,000 advanced AI chips to Tencent that were unavailable in China.
Where was Tencent planning to lease Oracle's AI chips?
Tencent planned to lease Oracle's AI chips across multiple Oracle data centers in Southeast Asia over a five-year period.
How did Chinese officials respond to the Oracle-Tencent deal?
Chinese officials in Guangdong urged Tencent to support domestic Chinese chip manufacturing, following US pressure.

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