Oracle Cancels $7 Billion AI Chip Deal With Tencent

Oracle Corp. canceled a five-year agreement to lease 100,000 artificial intelligence chips to Tencent Holdings Ltd. The deal, valued at $7 billion, would have represented the largest overseas agreement in the history of the Chinese technology firm.

The cancellation follows concerns raised by United States officials. Reports indicate that the administration of Donald Trump pressured Oracle to terminate the arrangement. The move targets a growing trend where Chinese AI developers rent access to accelerators, including those from Nvidia Corp., through overseas data centers to bypass U.S. export controls.