Tencent Leases $7 Billion Worth of AI Chips from Oracle

Tencent has entered a five-year lease for 100,000 advanced AI chips from Oracle, valued at approximately $7 billion. This marks Tencent's largest overseas deal with a US cloud provider. The chips, located in Oracle's Southeast Asia data centers, are unavailable in China. Tencent's recent cash flow turned negative due to heavy investments in AI infrastructure. The company aims to use these chips for developing Hunyuan models. Executives are optimistic about the investment's potential returns.