Malaysia Could Become First Country To Choose HUAWEI AI Chips For National AI Project

Malaysia is considering Huawei AI chips for a RM2 billion national project despite concerns from the US.

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Cover ImageCover image via NSTP & New Straits Times

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Malaysia is reportedly considering HUAWEI's AI chips for its RM2 billion sovereign AI project

The federal government is assessing HUAWEI's Ascend 910C AI hardware as the foundation for a national initiative aimed at keeping local data under domestic control.

If finalised, the deal would mark the first known instance of a foreign government officially selecting Chinese AI accelerators over American technology.

Prime Minister Datuk Seri Anwar Ibrahim has previously emphasised that Malaysia aims to be more than just a consumer of foreign technology.

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Prime Minister Datuk Seri Anwar Ibrahim wants Malaysians to build their own AI technologies.

Image via NSTP/AIZUDDIN SAAD

Central to the national project is keeping sensitive government, military, and intelligence data securely stored within Malaysia. This would help ensure the information remains outside the reach of US regulations such as the US Cloud Act.

According to The Edge Malaysia, the potential move has sparked data security concerns among US officials.

Addressing the potential friction caused by American laws, Anwar said, "I do not consider that law reasonable, but how does one argue with President Trump?"

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The US has raised security concerns over Malaysia's potential engagement with HUAWEI for its AI national project.

Image via New Straits Times / AFP

US officials raised security concerns after state-linked telecommunications company Telekom Malaysia Bhd (TM) was selected as the main operator for the project

This decision leverages TM's existing partnership with HUAWEI.

Washington officials have warned of national security risks associated with foreign-made hardware handling sensitive government data.

Malaysian National Security Council officials are scheduled to travel to Washington later this month to discuss the matter.

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