Oracle has canceled a chip leasing contract with Tencent after US officials raised concerns about the deal, the Financial Times reported on Wednesday, Nov. 4, according to Reuters. The FT reported last month that the contract was worth an estimated $7 billion.
The FT reported in October that Tencent had signed a five-year lease across multiple Oracle data centers in Southeast Asia, its largest overseas lease deal. According to Reuters’ account of the FT’s reporting, the arrangement would have given Tencent access to about 100,000 advanced AI chips that were not available in China because of curbs from Washington and Beijing.
US officials approached Oracle to raise concerns about the Tencent deal, the FT reported, citing people familiar with the matter, according to Reuters. The FT also reported that top officials from Guangdong province, where Tencent is based, visited the company and asked it to support domestic Chinese chips, Reuters said.
Reuters said it could not immediately verify the FT report. Oracle, Tencent and the White House did not respond to Reuters requests for comment.
In its own account of the FT report, Investing.com said the FT cited two people familiar with the matter. Investing.com also noted that the FT reported on Tuesday, Nov. 3, that Nvidia had told its cloud computing clients they must sell at least 51% of their capacity to non-Chinese companies, and said ByteDance and Alibaba still have large chip leasing deals with US providers, with Oracle a major supplier to ByteDance in Asia through several data centers in Malaysia.
Sources
- Reuters via Business Standard: Oracle abandons $7 billion Tencent AI deal (November 4, 2026)
- Investing.com: Oracle cancels $7 bln chip leasing deal with Tencent, FT reports, by Ambar Warrick (November 4, 2026)
- AI Tech Daily: Tencent signed about $7 billion Oracle lease for about 100,000 AI chips in Southeast Asia, FT reports (October 1, 2026)