Oracle reportedly makes $7b lease deal with Tencent for 100,000 AI chips
Oracle has reportedly entered a five‑year lease agreement with Tencent for about 100,000 advanced AI chips that are not available in China. The deal is estimated to be worth about $7 billion, or roughly $1.60 per chip per hour, with about 30 % paid upfront, according to a Financial Times report. Tencent’s Chief Strategy Officer James Mitchell said compute rental prices are climbing, while…
Key points
- 100,000 ai chips leased for about $7billion
- $1.60 per chip per hour, 30% upfront
- deal legal under current U.S. rules but faces potential regulatory scrutiny
The arrangement follows Oracle’s recent $1.2 billion-plus deal for Datasection Blackwell rentals in Japan and Australia, and comes weeks before Oracle’s Investor Day on Oct. 28. Both parties stand to benefit: Oracle could improve cash flow after a negative free‑cash‑flow quarter, and Tencent could offset the cost of rented chips with higher cloud prices.
Regulatory scrutiny is likely, as the U.S. Department of Commerce is drafting a rule to block Chinese firms from renting compute in third countries, and the Remote Access Security Act would allow the U.S. government to regulate remote cloud access to sensitive technology.
The story so far
2 episodes →- Oracle reportedly makes $7b lease deal with Tencent for 100,000 AI chipsthis story
Tencent scores 100,000 offshore AI chip deal with Oracle for $7 billion despite climbing prices
Tom's Hardware · 5 October 2026
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