Oracle Reportedly Cancels $7B Tencent AI Chip Deal After US and Chinese Pressure

Oracle $ORCL has reportedly canceled a five-year AI chip leasing agreement worth approximately $7 billion with Tencent following pressure from the Trump administration, according to the Financial Times.
The proposed arrangement would have provided Tencent with access to as many as 100,000 advanced AI chips housed in Oracle data centers across Southeast Asia, potentially making it Tencent's largest overseas chip leasing agreement.
The deal would have allowed Tencent to access computing hardware that is difficult to obtain within China because of US export restrictions and Chinese technology policies.
According to the report, US officials approached Oracle with concerns about the arrangement. Senior Chinese officials also reportedly urged Tencent to support domestic semiconductor suppliers.
Although overseas leasing of AI computing capacity remains permitted under existing rules, the agreement was reportedly abandoned following pressure from both governments.
Oracle, Tencent and the White House have not publicly commented on the reported cancellation. The development highlights growing political and regulatory uncertainty surrounding cross-border AI infrastructure agreements.