Malaysia weighs Huawei chips for sovereign AI push

Malaysia is considering using Huawei’s AI chips for a RM2 billion ($494 million) program aimed at enhancing the nation's control over data. The Southeast Asian country is exploring Huawei’s marquee Ascend 910C product, despite US warnings that its use could breach export regulations. Huawei has been striving to boost its AI chip performance despite US restrictions on foreign production tools, but its products still trail Nvidia’s by a significant margin.

Prime Minister Anwar Ibrahim wants Malaysia to be more than just a consumer of foreign technology and is encouraging local telecom firms to collaborate with foreign companies on broader AI frameworks. If Malaysia proceeds with Huawei chips, it would be the first instance of a foreign government choosing Chinese AI accelerators over American ones.

The initiative relies on data that must remain within Malaysia, and Anwar has expressed concerns over US regulations, such as the Cloud Act, that could compel technology companies to share electronic data. Malaysia's sovereign AI efforts could provide an early test of how the US administration handles relations with countries that refuse to fully align with its stance while still seeking US investment.