Oracle has entered into a five-year agreement to provide Tencent with access to 100,000 AI accelerators. These computing resources, which are subject to US export restrictions, will be hosted in Oracle data centers located in Southeast Asia.
The deal is valued at $7 billion, with Oracle receiving 30% of the total amount as an upfront payment. This contract represents the largest agreement of its kind between Tencent and a non-Chinese technology provider.
Tencent is currently expanding its AI infrastructure to support the development of its Hunyuan model family. In the second quarter of 2026, the company increased its capital expenditures by 176% year-on-year to ¥52.8 billion.
The transaction remains legal under current US export control regulations, which do not explicitly prohibit the remote leasing of computing power. This regulatory gap persists following the cancellation of the AI Diffusion Rule by the Trump administration in May 2025.
Other Chinese firms, including Alibaba and ByteDance, have adopted similar strategies to bypass hardware shortages. ByteDance, for instance, secured access to 2,304 Nvidia B200 accelerators through a Norwegian data center operated by the British provider Nscale.
