Malaysia nears Huawei AI chip decision for sovereign project

Malaysia is reportedly nearing a decision to use Chinese technology giant Huawei's artificial intelligence chips for its national sovereign AI project, a move that could test its trade commitments with Washington and mark a significant moment in the global AI hardware race. The Southeast Asian nation is seriously evaluating Huawei's Ascend 910C accelerators to power a 2 billion ringgit (approximately $494 million) initiative aimed at enhancing control over national data. The project's core objective is to keep sensitive government, military, and intelligence information within Malaysia's borders. Prime Minister Anwar Ibrahim has previously expressed concerns about U.S. regulations, such as the Cloud Act, which could compel American technology companies to disclose data stored overseas, potentially compromising national security. This desire for data sovereignty is a key driver behind the consideration of Huawei hardware. Telekom Malaysia, a state-linked telecommunications company, has been selected as the key operator for the project following a public tender.