New Delhi, Nov 4 (SocialNews.XYZ) Oracle has reportedly canceled a multibillion-dollar agreement to lease advanced artificial intelligence chips to Chinese technology giant Tencent after coming under pressure from the Trump administration.
The report by Financial Times said US officials approached Oracle with concerns about the arrangement, which would have provided Tencent with access to a large number of advanced AI chips through Oracle's overseas data center network.
The move highlights growing scrutiny by Washington over China's access to cutting-edge computing technology amid an intensifying technology rivalry between the two countries.
The deal, first reported by the Financial Times last month, was estimated to be worth about $7 billion and was described as Tencent's largest overseas leasing agreement.
Under the proposed five-year arrangement, Tencent was expected to gain access to around 100,000 advanced AI chips housed across multiple Oracle data centers in Southeast Asia.
The chips were seen as a way for Tencent to bolster its AI capabilities despite restrictions that have limited China's direct access to advanced semiconductors.
Washington has imposed export controls on high-end chips and AI-related technologies, while Beijing has pursued policies aimed at strengthening domestic semiconductor capabilities.
According to the report, Tencent has also faced pressure at home. Senior officials from Guangdong province, where the company is headquartered, reportedly urged the tech firm to support the use of domestically developed Chinese chips instead of relying on foreign technology.
Reuters could not independently verify the report. Oracle, Tencent and the White House did not immediately respond to requests for comment on the matter.
These chips are mainly needed to train AI models. Chinese companies are using overseas computing facilities because their domestic chips are not yet able to handle all these tasks. Although such overseas leasing deals are currently allowed under existing rules, US companies are facing increasing pressure to limit their business with Chinese customers.
Source: IANS
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