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

By Thomson Reuters Nov 3, 2026 | 11:55 PM

Nov 4 (Reuters) – 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

(Reporting by Shivani Tanna in Bengaluru; Editing by ​Janane Venkatraman)