AI chips: Oracle apparently cancels contract with Tencent – over seven billion dollars
The US government is said to have expressed concerns - the seven billion dollar deal is about to end
Quick Look
- According to a media report, the US software company Oracle has canceled a five-year contract for AI chips with the Chinese company Tencent.
- The reason is concerns from the US government.
AI-generated summary
Why It Matters
US restrictions limit exports of advanced AI chips to China.
Dusseldorf. The US software company Oracle has apparently canceled a contract with the Chinese technology group Tencent to rent chips for artificial intelligence (AI). The Financial Times (FT) reported on this. The US government had previously expressed concerns about the project. The report cites two people familiar with the matter.
The US group had signed a five-year contract with Tencent. The newspaper estimates his worth at seven billion dollars. This would have given Tencent access to up to 100,000 advanced AI chips across multiple data centers in Southeast Asia. These chips are not available in China due to restrictions from Washington and Beijing.
Two people familiar with the matter told the newspaper that U.S. officials had approached Oracle and expressed concerns about the deal. Senior officials from Guangdong, where Tencent is based, also visited the company, according to one of the people. They asked Tencent to use Chinese chips and thus promote the national chip industry. Oracle, Tencent and the White House did not immediately respond to the newspaper's inquiries.
Open Questions
- When exactly was the contract terminated?
- How does Tencent officially respond to the failure?
