Oracle nixes $7B chip leasing deal with Chinas Tencent after Trump admin pushback: report | Latest Tech News
Oracle has reportedly nixed a $7 billion deal to lease pc chips to Chinese tech giant Tencent after getting pushback from the Trump administration.
The deal struck by Oracle and its billionaire chairman Larry Ellison would have supplied Tencent with access to up to 100,000 AI chips situated at Asia-based data facilities over a five-year time period.
Ordinarily, Tencent could be barred from accessing the superior chips due to US export controls.
Trump administration officers told Oracle they had been involved about the association – which comes as the US and China are locked in a winner-takes-all race for AI dominance – and it was finally canceled, the Financial Times reported, citing two sources with data of the matter.
An Oracle UltraSPARC M7 CPU server microprocessor is displayed at the TSMC Museum of Innovation in Hsinchu, Taiwan, in April 2025. Bloomberg via Getty Images
Separately, Chinese authorities officers reportedly pressured Tencent to use home pc chips somewhat than Western counterparts, the report said.
Representatives for Oracle, Tencent and the White House didn’t immediately return requests for remark.
The Trump administration had expressed considerations over the association. AFP via Getty Images
Oracle is thought for its close ties to China-based ByteDance. The California-based firm was half of the group of US buyers that acquired the bulk of TikTok’s US operations last yr in a deal brokered by the White House. Ellison himself is a major Trump ally.
US export guidelines stop the sale of the most superior AI chips from Nvidia to Chinese companies. As a consequence, Tencent and other Chinese companies have sought offers to lease chip capability from abroad data facilities.
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