Oracle has cancelled a roughly $7-billion lease of AI computing capacity to Tencent after pressure from the Trump administration, the Financial Times reported Wednesday.
The five-year deal, first reported by the FT in early October, would have given the Chinese tech giant access to about 100,000 advanced AI chips in Oracle data centres in Southeast Asia. The chips are not available in China because of curbs imposed by Washington and Beijing.
It was a lease of computing capacity abroad, not a delivery of chips to China. The FT reported in October that U.S. export rules permit overseas cloud leases of this kind, and that Tencent was to pay about 30 per cent upfront.
The FT also reported that senior officials in Guangdong province recently visited Tencent and asked it to support Chinese-made chips.
Source: Financial Times, as reported by TechNode and The Next Web
