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Oracle dropped an estimated $7 billion deal to rent AI chips to Tencent, the FT reported. US officials had raised concerns.

Oracle had signed a five-year contract to rent AI chips to Tencent, giving it access to up to 100,000 advanced chips in several data centres in Southeast Asia.

ERP LEADERS news desk · · First reported by Handelsblatt / Financial Times · Edition no. 59
Photo: Shkuru Afshar/Wikimedia, CC BY-SA 4.0 · original

Handelsblatt reported the cancellation, citing the Financial Times and two people familiar with the matter. The FT put the deal's value at $7 billion.

Those chips are not available inside China because of restrictions from both Washington and Beijing.

According to the report, US officials approached Oracle with concerns about the deal. One of the people said senior officials from Guangdong, where Tencent is based, also visited Tencent and asked it to use Chinese chips.

Oracle and Tencent had not responded to the FT's requests for comment. Neither had the White House.

If the report holds, Oracle loses a five-year contract the FT valued at $7 billion.

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Companies in this story
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Our file on Oracle

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  2. 3 Nov

    Oracle NetSuite user Brennan Industries says AI builds up to five ERP apps a day. ERP architects maintain that code.

  3. 2 Nov

    Microsoft, Oracle and three peers cut buybacks 83% to $13.6bn. AI spending is eating their cash, a Reuters analysis found.

  4. 2 Nov

    Erasmus University's move from SAP to Oracle is 70% over budget, at €20.2m. A one-year delay cost €4.5m of that.

  5. 30 Oct

    Oracle's co-CEO says 'up to' figures in data-centre press releases mean nothing. Separately, diginomica reported a power delay at Oracle's Wisconsin site.

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For your next steering committee

Questions for your own programme. They are not findings about any company in this story.

  1. 1Ask which design decisions in your programme would be expensive to reverse, and when each was last reviewed.
  2. 2Ask which expected benefits change if the implementation approach changes.
  3. 3Ask who owns a decision to change course, and where it would be recorded.

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