Oracle Said to Lease 100,000 AI Chips to Tencent in $7B Deal
The reported five-year arrangement would place the chips in Oracle data centers in Southeast Asia at roughly $1.60 per chip per hour, according to the Financial Times.
Oracle has reportedly agreed to a five-year lease that would let Tencent rent about 100,000 advanced AI chips at Oracle data centers in Southeast Asia, according to a Financial Times report. The deal is estimated to be worth about $7 billion, with the specific chips involved not yet named. Neither Oracle nor Tencent has commented on the report.
The estimated rate works out to about $1.60 per chip per hour over the five-year term, with roughly 30% paid upfront, the Financial Times reported.
The report lands against a backdrop of shifting AI hardware economics. On Tencent's August 12 earnings call, president Martin Lau said existing chip orders could be sold at more than 30% profit versus what Tencent paid a few months earlier, according to the report.
Market rates for comparable capacity have moved through 2025. SemiAnalysis put Nvidia's H100 at roughly $2.80 per GPU-hour on a one-year contract in August, while its index showed one-year H100 contracts at about $1.70 per GPU-hour as of October 2025. A 2025 filing by Datasection described a three-year Nvidia B200 contract at about $3.09 per GPU-hour for an unnamed customer.
On the supply side, Oracle said on a June call that its fiscal Q4, covering March to May, added $67 billion of AI contracts, mostly prepaid or bring-your-own-hardware deals. A quarterly filing showed $11.4 billion of prepayments with a significant financing component from June through August, with deferred revenue rising from $15.4 billion to $30.8 billion. On its September 10 earnings call, Oracle reported 97.9% GPU utilization and renewals at a 20% average premium, mostly on GPUs four years or older.
Tencent has already expanded its overseas compute footprint: the Financial Times reported in December 2025 that the company signed a $1.2 billion-plus deal for Datasection Blackwell rentals in Japan and Australia. Oracle operates two Singapore cloud regions and has announced a Malaysia region. The Remote Access Security Act, which passed the House 369-22 in January, would let the U.S. government regulate remote cloud access to sensitive technology.
Quick answers
How much is the reported Oracle-Tencent chip deal worth?
The five-year lease is estimated at about $7 billion, according to a Financial Times report. Neither Oracle nor Tencent has commented on it.
Which AI chips are covered by the reported deal?
The specific chips have not been named. The report describes about 100,000 advanced AI chips to be rented at Oracle data centers in Southeast Asia.
What is the reported rate per chip?
The estimate works out to about $1.60 per chip per hour over five years, with roughly 30% upfront, per the Financial Times.