Oracle terminated a multi-billion dollar chip-leasing contract with Tencent under Trump administration pressure.
Macro & Markets ·
Oracle has terminated a multi-billion dollar chip-leasing contract with Tencent following pressure from the Trump administration. The agreement had allowed the Chinese technology company to lease computing capacity from Oracle's cloud infrastructure, supporting Tencent's operations outside China.
The move reflects escalating scrutiny of technology partnerships between U.S. companies and major Chinese firms under the current U.S. administration. Chip leasing and cloud services have become focal points in U.S.–China technology restrictions, as policymakers aim to limit China's access to advanced computing resources. Oracle's action signals willingness among U.S. tech firms to comply with government directives on China-related business dealings.
The full scope of the administration's pressure campaign, the specific timeline of negotiations, and whether other U.S. companies face similar directives remain unclear. The contract's exact value, duration, and the extent of Tencent's dependence on Oracle's infrastructure for its overseas operations have not been disclosed.