Veytics Intelligence
2026-11-05 · Yahoo

Oracle's $7 billion AI deal collapses over an unexpected risk

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This article first appeared on GuruFocus. Oracle Corp. (ORCL, Financials) has allegedly called off a $7 billion deal to lease artificial intelligence chips to Tencent, causing Wedbush Securities to look at political constraints underlying the move.The five-year arrangement would have given Tencent access to around 100,000 sophisticated AI chips in Oracle data centers across Southeast Asia.U.S. officials allegedly raised worries about the partnership with Oracle. In Guangdong province in China, officials also requested Tencent's help in backing homegrown chips.The firms have not officially elaborated on the decision but Wedbush claimed political concerns may assist explain the cancelation.

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