Weekly Recap: Five-year $7B Oracle AI chip lease and Yuanbao features limited

Tencent reportedly agreed to a $7B, five-year deal with Oracle for 100,000 AI chips in Southeast Asia, according to the Financial Times. Neither company confirmed the agreement. Tencent's Q2 capital expenditure rose 176% YoY to RMB52.8B, with free cash flow negative RMB13.8B. Oracle has expanded AI cloud capacity, delivering 300,000 GPUs and booking $30B in contracts. The deal may face regulatory scrutiny due to US export controls on remote access.

Tencent reportedly leased 100,000 AI chips from Oracle for $7B over 5 years. Oracle will receive 30% upfront. Tencent's Q2 2026 capex rose 65% to $7.8B, with negative free cash flow of $2B. Oracle's share price is down 50% since 2025, with $2.8B restructuring costs and negative free cash flow of $5.39B in Q1 2027.

Tencent reportedly signed a $7B deal with Oracle for 100,000 AI chips hosted outside China, adapting to restricted hardware access. The contract, if confirmed, would be Tencent's largest overseas compute lease, supporting its AI investments. Oracle's AI cloud business is expanding rapidly, with Q1 revenue up 121% YoY, but faces financial pressures from heavy spending.

Ukraine used the FP-7 missile in combat for the first time. Russia extended diesel export restrictions. 10-year US Treasury yield hit 5.342%, its highest since 2002. FT reported Tencent's 5-year deal with Oracle for 100,000 AI chips, valued at $7B.

Tencent has agreed to a $7 billion, five-year deal with Oracle to lease 100,000 AI chips, with a ~30% upfront payment. The agreement addresses Tencent's AI computing needs amid US export restrictions on semiconductors.

Oracle (ORCL) reportedly secured a $7 billion, five-year cloud deal with Tencent (TCEHY) for Southeast Asian data centers, according to the Financial Times. Oracle stock fluctuated on the news.