# Oracle reportedly makes $7b lease deal with Tencent for 100,000 AI chips

Digest AI · Business & Funding · published 2026-10-05T13:20:00Z

Canonical: https://digestai.news/story/oracle-reportedly-makes-7b-lease-deal-with-tencent-for-100-000-ai-chip

## Summary

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 Tencent president Martin Lau said the company could sell existing orders at “more than 30 % profit” compared to what it paid a few months ago.  The lease is legal under current U.S. rules, but the Remote Access Security Act and forthcoming Commerce rules could create regulatory uncertainty.  Oracle’s data centers are outside China, and the hardware being leased is not named; the deal may involve older or non‑Nvidia hardware, which could fit Hopper‑class pricing.

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.

## 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

## Why it matters

Cross‑border AI compute leasing offers Chinese firms cheaper access to advanced chips, but regulatory changes could limit such arrangements, affecting global AI training and supply chains.

## Sources

1. [Tencent scores 100,000 offshore AI chip deal with Oracle for $7 billion despite climbing prices](https://tomshardware.com/tech-industry/data-centers/tencent-scores-100-000-offshore-ai-chip-deal-with-oracle-for-usd7-billion-despite-climbing-prices-per-hour-costs-estimated-to-be-43-percent-under-standard-h100-rental-rates) (Tom's Hardware, 2026-10-05)

Part of the developing story: [Tencent Oracle AI Chip Deal Saga](https://digestai.news/thread/tencent-signs-7b-deal-with-oracle-for-100k-ai-chips) (2 stories)

## Cite

Digest AI, "Oracle reportedly makes $7b lease deal with Tencent for 100,000 AI chips", 5 October 2026, https://digestai.news/story/oracle-reportedly-makes-7b-lease-deal-with-tencent-for-100-000-ai-chip

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