Report: Malaysia weighs Huawei chips for RM2 billion sovereign AI project
Malaysia is seriously evaluating Huawei's Ascend 910C chips as the backbone of a RM2 billion sovereign AI initiative, according to a Bloomberg report carried by The Edge that cites unnamed people familiar with the matter. It is unclear how many chips would be bought, and the Prime Minister's Office, the Digital Ministry, Huawei and Telekom Malaysia did not respond to requests for comment.
Key points
- US officials warned last year that using Ascend 910C chips could violate American export regulations, the report said.
- The move would be the first known case of a foreign government officially choosing Chinese AI accelerators over American ones.
- Telekom Malaysia was chosen after a public tender as the project's key operator, according to the people familiar with the matter.
- One person said the Malaysian government regards any decision on the matter as purely commercial.
Why it matters for Malaysia
Malaysia's data centre boom leans heavily on American firms, so a choice of Huawei hardware would test how far it can pursue data sovereignty without straining ties with Washington. No decision has been reported.
Questions answered
- Has Malaysia decided to buy Huawei AI chips?
- No decision has been reported. A Bloomberg report carried by The Edge on 7 September 2026 said Malaysia is seriously evaluating Huawei's Ascend 910C chips for a RM2 billion sovereign AI initiative, citing unnamed people familiar with the matter.
- Why does Malaysia want sovereign AI?
- According to the report, the effort aims to keep data, including sensitive government, military and intelligence material, within Malaysia. Anwar Ibrahim has said the US Cloud Act may pose a challenge because American courts can compel US technology firms to hand over data stored overseas.