Oracle ‘dumps’ $7 billion with one of China’s biggest IT company after the US government reportedly tells the company: You cannot …
The California-based company signed a five-year lease with the leading Chinese tech giant to provide access to as many as 100,000 advanced AI chips across a host of data centres in south-east Asia, according to a report by Financial Times. Estimated to be worth $7 billion, it was Tencent’s largest overseas leasing deal. The FT also reported that Nvidia has asked cloud computing providers to ensure that at least 51% of their services are sold to non-Chinese customers.
It would have given the group access to chips unavailable for use in China due to curbs from Washington and Beijing. The contract was first reported by FT in September. Oracle has reportedly abandoned a multibillion-dollar chip with China’s Tencent after bowing to pressure from the US administration. US companies are facing greater scrutiny over their exposure to Chinese clients Although overseas chip-leasing deals remain permitted under existing rules.