Oracle scraps $7 billion Tencent chip lease under US pressure

Oracle has scuttled a $7 billion, five-year chip leasing contract with Tencent after US officials raised concerns about the deal, the Financial Times reported, in a contract that would have given the Chinese company access to as many as 100,000 advanced AI chips in data centres across Southeast Asia.

Why it matters: The cancellation is a direct hit to Chinese cloud firms' offshore route to advanced AI compute, and it lands alongside a reported new Nvidia condition that cloud clients sell at least 51 percent of capacity to non-Chinese companies.

Data as of Investing.com report of the Financial Times report, read in full via the live browser on November 4, 2026. The FT account rests on two people familiar with the matter, and neither Oracle nor Tencent is reported to have commented. Evidence grade C. Developing item.

Oracle has scuttled a $7 billion chip leasing contract with Tencent after US officials raised concerns with Oracle about the deal, the Financial Times reported on Wednesday. The five-year lease, signed earlier this year, would have given Tencent access to as many as 100,000 advanced artificial intelligence chips in data centres across Southeast Asia.

Tencent was also scrutinised by Beijing over the deal and asked to seek domestic chips, the FT reported. ByteDance and Alibaba still have chip leasing deals in place, and Oracle is a major supplier to ByteDance in Asia, with several data centres in Malaysia.

Oracle scraps $7 billion Tencent chip lease under US pressure

Sources