Tencent announces $7B AI chip deal

Tencent, the Chinese company, announced the signing of a $7 billion leasing agreement with Oracle to access approximately 100,000 advanced artificial intelligence chips over five years through data centers in Southeast Asia. This deal aims to enable Tencent to better compete in the AI sector by developing its own models and products, and integrating technology into services such as WeChat. This agreement is the largest external leasing contract for AI chips and allows Tencent to access advanced American chips, like Nvidia's, despite restrictions on direct purchasing within China. Over the past year, Tencent has intensified its investments in AI, even at the expense of profit margins, to narrow the gap with local competitors and enhance its global competitiveness.

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