Oracle has canceled a $7 billion agreement to lease advanced AI chips to Tencent, a Chinese tech company. The decision came after pressure from the US government, specifically under the administration of President Donald Trump. According to the Financial Times, US officials raised concerns about the deal. The newspaper cited unnamed sources familiar with the matter. The canceled deal would have allowed Tencent to access cutting-edge AI hardware. Oracle had planned to supply the chips through its cloud infrastructure. The move reflects broader US efforts to limit China’s access to advanced technology. The cancellation affects Oracle’s strategy in the AI sector. It also highlights tensions between US tech firms and Chinese counterparts. The deal was part of a larger trend of US restrictions on technology exports. The impact on Tencent’s AI development remains unclear. The situation underscores the geopolitical influence on business decisions. The cancellation marks a significant shift in US-China tech relations.