Oracle has reportedly entered into a five-year agreement with Tencent to provide access to approximately 100,000 advanced AI chips. The deal is valued at roughly $7 billion, with about 30% of the total amount expected to be paid upfront.
The hardware will be located in Oracle data centers across Southeast Asia. Tencent will rent computing power rather than owning the physical chips, which allows the company to utilize high-end technology that is currently restricted for import into China by US export controls.
Tencent has significantly increased its investment in AI infrastructure, with capital expenditure for the second quarter of 2026 reaching between RMB 52.8 billion and RMB 53 billion, marking a 176% year-over-year increase.
For Oracle, this partnership represents a major addition to its cloud operations, which have deployed over 300,000 GPUs in recent quarters. Following the reports, Oracle shares rose nearly 2% in premarket trading.
