PremiumTencent Rents 100,000 AI Chips At Huge Discount From Cash-Strapped Oracle In $7BN Deal
With its flagship US data center in force majeure, its CDS at record wides and its founder busy funding Hollywood, Oracle has found a new customer eager to pay upfront: China. And based on the reported terms, Oracle is also giving it a very good price.
According to the FT, Tencent has signed its largest-ever overseas lease with Oracle: a five-year agreement covering multiple Oracle data centers in south-east Asia that gives the Chinese social media and gaming giant access to roughly 100,000 advanced AI chips that are not available in China. The deal is estimated at about $7 billion, with an upfront payment of about 30%, or roughly $2.1 billion. Neither company commented. As we put it overnight: "Since Oracle's data centers in the US are mothballed, Larry now doing business with Beijing."