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Update
What changedThe Financial Times says Tencent agreed to pay 30 per cent upfront for the reported five-year, roughly $7bn lease of about 100,000 advanced AI chips from Oracle.
The FT also says Tencent plans to use the capacity to train AI models and develop agentic tools. The arrangement offers access without building its own server farms, according to the report.
The report says spending associated with the deal contributed to Tencent’s negative free cash flow in the second quarter. That is a new financial consequence alongside the previously reported terms, and remains attributed to the FT.
Sources and evidence- Sources: Tencent signed a ~$7B, five-year deal with Oracle this year for access to ~100K advanced AI chips unavailable in China via Southeast Asian data centers: The Financial Times reports that Tencent’s approximately $7bn, five-year lease of about 100,000 advanced AI chips from Oracle includes a 30 per cent upfront payment; Tencent plans to use the capacity for AI models and agentic tools; and spending associated with the deal contributed to negative free cash flow in the second quarter.
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