Oracle cancels a $7 billion lease to Tencent worth up to 100,000 advanced AI chips after US opposition.

After US opposition, Oracle has cancelled its five-year, $7 billion lease to Tencent for up to 100,000 advanced AI chips. This deal was Tencent's largest overseas computing power contract, with chips sourced from Southeast Asian data centers. Officials in Guangdong have also urged Tencent to switch to domestic chips; Nvidia now requires cloud customers to sell at least 51% of their services to non-Chinese enterprises. Tightened export controls have raised lease prices and prepayments, and such cancellations will cut premium revenue for US cloud providers. While Tencent's Hunyuan model is narrowing the gap with Alibaba's Qwen, it loses planned computing power.