Oracle reportedly signs $7B AI compute deal with Tencent
The five-year agreement would give Tencent access to roughly 100,000 advanced AI chips across Oracle data centers in Southeast Asia, with about 30% paid upfront, according to the Financial Times.
Oracle has reportedly signed a five-year deal with Tencent to give the Chinese company access to roughly 100,000 advanced AI chips across Oracle data centers in Southeast Asia. The agreement is estimated at about $7B, with roughly 30% paid upfront. Tencent is using the capacity to train AI models and build agentic products as it steps up investment in AI infrastructure. 9B, up +176% YoY.
Q2 free cash flow was -$2B, its first negative quarter in more than a decade. Tencent is also rolling out AI agents across WeChat and its enterprise products.