Report: Oracle and Tencent cancel $7 billion AI chip lease

Oracle has reportedly cancelled a roughly $7 billion AI chip leasing agreement with Tencent, according to the Financial Times, which cited two unnamed sources; neither Oracle's newsroom nor Tencent's investor pages show an official announcement confirming the deal or its cancellation. The reported contract would have given Tencent access to up to 100,000 high-performance AI chips across multiple Oracle data centers in Southeast Asia over five years, with the $7 billion figure an estimated contract value and the 100,000-chip count a ceiling on accessible units rather than actual usage. The reported reversal matters because it signals potential softening in demand for AI compute capacity just as Oracle and other cloud providers ramp up data-center spending tied to AI workloads. Investors will watch for formal confirmation from Oracle ($ORCL) or Tencent (0700.HK) and for any knock-on effects on Oracle's cloud backlog and AI infrastructure commitments.