Oracle reportedly cancels $7 billion Tencent AI chip lease under US pressure · TechNode

Oracle reportedly canceled a $7B AI chip lease deal with Tencent after US officials raised concerns, according to Financial Times. The five-year contract involved up to 100,000 chips in Southeast Asia. Neither company confirmed the cancellation, and the fate of the upfront payment is unclear. Oracle is a major supplier to ByteDance in Asia.

Oracle terminated a $7B AI chip leasing deal with Tencent, according to the Financial Times. US and Chinese officials reportedly pressured both companies to cancel the agreement, which would have provided Tencent with up to 100,000 AI chips over five years. The cancellation highlights increasing restrictions on Chinese access to advanced chips, both directly and through overseas infrastructure.

Tencent (0700) shares rose 5.93% to HK$425.40, a three-week high, after launching its Hunyuan AI model with visual and computer-use capabilities. The model, Hy4, has 770 billion parameters and will be integrated into Tencent's productivity platforms. The company plans to release model weights and system cards soon. The stock outperformed the Hang Seng Index's 3.3% gain.

Tencent's stock rose 6% to HK$425.2 after launching Hy4, a 770-billion-parameter AI model with vision capabilities. Analysts from CICC and Jefferies reiterated Buy ratings with price targets of HK$666 and HK$711, respectively, citing competitive advantages. The surge also followed broader market gains in Hong Kong, driven by reduced U.S. regulatory risks for Chinese tech.

Oracle (ORCL) canceled a $7B AI chip leasing deal with Tencent (0700.HK) due to U.S. government concerns. The deal, 30% prepaid, would have provided Tencent with 100,000 AI chips over five years. Tencent faces pressure from both U.S. and Chinese authorities regarding technology access and domestic chip usage. Nvidia (NVDA) also restricted cloud services to Chinese customers. On Nov. 4, ORCL shares fell 2.0%, and NVDA declined 3.2%.

Oracle canceled a $7B AI chip lease with Tencent due to U.S. government pressure, according to the Financial Times. The deal involved 100,000 AI chips over five years. This follows Nvidia's request for cloud customers to reduce China business. The cancellations signal U.S. efforts to curb China's access to advanced AI chips.