Oracle reportedly canceled $7 billion Tencent chip-leasing agreement

Oracle reportedly abandoned the Tencent arrangement

Oracle reportedly canceled a proposed $7 billion agreement under which Chinese technology company Tencent would lease advanced artificial-intelligence chips from data centers in Asia. The arrangement would have run for five years and covered access to as many as 100,000 chips. Reports said the proposal was abandoned after Trump administration officials approached Oracle with concerns about it.

The cancellation was reported by several outlets on November 4. Representatives for Oracle, Tencent and the White House did not immediately respond to requests for comment, leaving the proposal’s cancellation unconfirmed by the parties involved.

The proposed lease crossed an export-control divide

Tencent would ordinarily be barred from obtaining the advanced chips covered by the proposal because of U.S. export controls. A leasing arrangement outside China could have provided access without a direct sale of the chips to Tencent.

The proposal also came amid broader U.S.-China competition in artificial intelligence. Chinese technology firms have sought ways to lease chip capacity from overseas data centers as restrictions limit access to advanced chips made by companies such as Nvidia.

Chinese authorities reportedly pushed for domestic chips

Chinese government officials also reportedly pressured Tencent to use domestic computer chips instead of Western counterparts. The supplied reporting did not identify the officials or provide additional details about the pressure.

The proposed transaction involved several distinct roles: Oracle would provide leased chip capacity, Tencent would receive that access, and the underlying chips would remain located at overseas data centers. The $7 billion figure represented the reported value of the proposed lease agreement, not a cash payment already completed or received.

Market accounts differed on Oracle’s shares

Market coverage was inconsistent about Oracle’s stock reaction during November 4 trading. One report said shares traded slightly higher during the session, while another reported a 6% rise after the cancellation story. A later market report said Oracle closed at $123.73, down 1.95% from the previous close.

These figures describe different points or sessions in the trading day and do not establish that the proposed deal’s cancellation caused the stock movement. The reviewed sources did not provide an official Oracle announcement confirming the cancellation or its financial terms.