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Tencent scores 100,000 offshore AI chip deal with Oracle for $7 billion despite climbing prices

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Tencent scores 100,000 offshore AI chip deal with Oracle for $7 billion despite climbing prices

Oracle has reportedly made a deal with Tencent for a five-year lease at several Oracle data centers in Southeast Asia, covering about 100,000 advanced AI chips unavailable in China. The deal is estimated to be worth about $7 billion, which would come out to about $1.60 per chip per hour over five years, with about 30% upfront, according to a report by the Financial Times (FT). The deal lands as compute rental prices continue to climb, per Chief Strategy Officer James Mitchell on Tencent’s August 12 earnings call. Neither company has commented on the report, but such leases are legal under current U.S. rules, per the FT.

The estimated chip-hour price is around 43% less than the roughly $2.80 per GPU-hour for Nvidia’s H100 with a one-year contract, per research firm SemiAnalysis in August. It’s also about 48% lower than the $3.09 per GPU-hour for a three-year contract with Nvidia’s B200, per a 2025 filing by Japanese data center operator Datasection for an unnamed customer. Market trends have pricing running the other way, with the FT reporting longer terms and larger upfront payments for such leases. Tencent president Martin Lau said on the same call the company could sell its existing orders at “more than 30% profit” compared to what it “paid just a few months ago.”

No chips are named. The FT says that such leases could reach even Nvidia’s top processors, but that does not mean this deal involves Nvidia hardware. 70 per GPU-hour even as of October 2025, with the B200 rate being even more expensive despite its longer, three-year term.


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