Oracle Cancels $7 Billion Chip-Leasing Deal with Tencent

Oracle canceled a chip-leasing deal with Tencent valued at about $7 billion, which would have provided access to roughly 100,000 advanced AI chips in Southeast Asian data centers over five years. The companies had not formally announced the agreement. The cancellation followed reported concerns from U.S. officials and pressure on Tencent from Chinese authorities to favor domestic technology, underscoring rising regulatory and geopolitical risks for U.S. cloud providers serving Chinese AI companies.