Oracle Ends Reported $7 Billion Tencent AI Chip Deal

Nov 4, 2026
Oracle reportedly ended an agreement that would have given Tencent access to about 100,000 advanced AI chips at data centers in Southeast Asia.

Oracle has reportedly ended a cloud agreement with Tencent worth an estimated $7 billion, according to Data Center Dynamics, citing the Financial Times. The companies reportedly separated several weeks after signing the agreement.

Under the deal, Tencent would have leased about 100,000 advanced AI chips hosted at Oracle data centers in Southeast Asia. The arrangement would have provided access to chips that cannot be sold in China under US export controls.

The report says US officials contacted Oracle after the agreement and raised concerns. Officials in Guangdong also reportedly asked Tencent to support chips developed in China.

The report follows an FT report that Nvidia told cloud partners at least 51% of their services must go to customers outside China. Oracle still holds major contracts with ByteDance.

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