Oracle is reported to have signed a five-year data center lease with Tencent worth about $7 billion, with roughly 30% due upfront. This supports Oracle’s data center business, though neither company confirmed the report.
A large customer commitment could help fill Oracle’s data centers and bring in payments over several years. The reported upfront payment would bring some cash earlier. Oracle and Tencent have not confirmed the deal, so the account rests on a news report. Limits on chip access in China may explain Tencent’s use of data centers elsewhere, but access across borders remains important.
Nvidia is mentioned in an earlier report about Tencent renting access to its chips in Japan, but this story reports no new Nvidia deal or outcome. It does not change Nvidia’s outlook.
Alibaba is named among firms China may allow to buy Nvidia chips, but no approval or purchase is reported. That possibility alone does not change Alibaba’s outlook.
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