Oracle Reportedly Inks $7B Cloud Deal Leasing 100,000 AI Chips to Tencent

The reported five-year, $7B agreement gives Tencent access to roughly 100,000 advanced AI chips housed in Oracle data centers across Southeast Asia. Pricing sits at roughly $1.60 per chip per hour with a 30% upfront payment, undercutting standard Nvidia H100 rental costs by 43%. The arrangement explicitly exploits offshore cloud access, a recognized loophole in the US Commerce Department's November 2023 advanced chip export bans. Neither Oracle nor Tencent has confirmed the exact hardware involved, though the scale and pricing align with Hopper-class volume rather than newer Blackwell systems. The Remote Access Security Act, which passed the House 369-22, currently sits in the Senate Banking Committee and could eventually give the government authority to shut down these remote cloud leases. "We could sell our existing orders at more than 30% profit compared to what we paid just a few months ago." — Martin Lau