Oracle abandons $7 billion Tencent AI deal under Trump pressure: FT

Synopsis

US officials approached Oracle to raise concerns about the Tencent deal, the newspaper said, citing people familiar with the matter.

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Oracle has canceled a multibillion-dollar chip leasing contract with Tencent after bowing to pressure from the Trump administration, the Financial Times reported on Wednesday.

US officials approached Oracle to raise concerns about the Tencent deal, the newspaper said, citing people familiar with the matter.

Tencent also received visits from top officials in Guangdong, where the group is based, who asked the compnay to support domestic Chinese chips, the report said

Reuters could not immediately verify the report. Oracle, Tencent and the White House did not respond to Reuters requests for comment on the report.

The Financial Times reported last month that Tencent signed its largest overseas lease deal, worth an estimated $7 billion, with Oracle.

The deal would have given Tencent access to about 100,000 advanced AI chips that were not available in China due to curbs from Washington and Beijing, according to the report.

Tencent had agreed to a five-year lease across multiple Oracle data centers in Southeast Asia, according to the report. Add as a Reliable and Trusted News Source Add Now!

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