The proposed Oracle chip lease for Tencent ended after U.S. officials raised concerns, two people familiar with the plan said, halting a deal valued at $7 billion.
The plan would have allowed Tencent to access as many as 100,000 advanced AI chips at Oracle data centers in Southeast Asia. Its estimated value was $7 billion over five years.
The planned arrangement excluded use in China because of measures imposed by both Washington and Beijing.
One person familiar with the plan said senior officials from Guangdong visited Tencent to press for stronger backing for Chinese chipmakers. The U.S. officials’ concerns about the lease and the Guangdong officials’ appeal for domestic suppliers were separate interventions.
