Oracle cancels $7 billion deal with Tencent due to US pressure

Oracle has scrapped a $7 billion artificial intelligence chip leasing deal with Chinese tech giant Tencent amid pressure from Washington.

Technology firm Oracle has canceled a multi-billion dollar deal to lease artificial intelligence chips to the Chinese tech giant Tencent, according to reports today (Wednesday) by bloomingbit and Businesskorea. The agreement, which was intended to grant China access to advanced computing resources, was valued at $7 billion. According to the reports, the decision follows significant pressure from the US administration on Oracle, aimed at curbing China's ability to acquire advanced computing technology from the West.

As of now, neither company has released a detailed official statement regarding the cancellation. Further details concerning the business implications of the agreement's termination have not yet been released.