Tencent leases 100,000 AI chips from Oracle

Chinese company Tencent announced that it has signed its largest external leasing deal in history with American firm Oracle. The agreement involves leasing approximately 100,000 advanced AI chips from Oracle's data centers in Southeast Asia for a period of five years. The goal of this deal is to accelerate Tencent's development of AI capabilities, enabling it to deploy more sophisticated models and digital agents, thereby enhancing its competitiveness in the global tech race. The deal is valued at around $7 billion, with an initial payment of 30%, resulting in a net cash outflow of approximately $2 billion in the second quarter. This comes amid U.S. restrictions on the export of advanced chips, prompting Chinese tech companies to seek external computing resources, especially given limited local chip supply. Over the past year, Tencent has significantly increased its investment in AI infrastructure and is integrating AI technologies into its applications, particularly on WeChat, which is used by over 1.4 billion people. The company has launched improved models like the Hongyun series and developed intelligent assistants such as XiaoWei and WoZ Badi to enhance its capabilities in AI-driven business functions and daily interactions.

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