Oracle cancels $7 billion chip lease for Tencent after pressure from the Trump administration
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Export restrictions are beginning to affect not only chip sales but also the rental of computing capacity outside China.
According to a Financial Times report relayed by The Next Web, the five-year contract would have let Tencent rent about 100,000 advanced SI chips in Oracle data centers in Southeast Asia, with around 30% of the price paid upfront. US officials approached Oracle with concerns about the deal; separately, according to the FT, authorities in Guangdong province urged Tencent to support Chinese chipmakers. Reuters could not independently verify the report, and Oracle, Tencent, and the White House did not respond to its requests. Offshore leasing gave Tencent access to computing on chips that cannot be supplied to China under current restrictions.
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