Malaysia considering $2 billion Huawei AI deal under US export rule threat
Telekom Malaysia is evaluating Huawei Ascend 910C chips for a RM2 billion national AI project, navigating conflicting US export restrictions and domestic sovereignty goals.
Malaysian officials are actively evaluating Huawei's Ascend 910C processors for a new sovereign artificial intelligence initiative valued at RM2 billion. The government aims to build infrastructure capable of keeping sensitive national data under domestic control, with state-linked Telekom Malaysia designated to operate the system. This hardware choice represents a strategic move amid growing international friction between Washington and Beijing regarding core AI technology. US officials have issued specific warnings that adopting Huawei Ascend 910C chips could violate American export-control rules. In response, Malaysian leadership maintains that technology procurement must align with national interests and applicable laws. The current project involves the older Ascend 910C series rather than the newer Ascend 950 models, which are currently in limited production globally. Telekom Malaysia is already established as a provider of AI computing services utilizing Nvidia processors, highlighting the competing technological landscape facing the nation.