Huawei reportedly emerged as Malaysia’s preferred supplier of AI chips, with serious consideration being given for the Chinese vendor to provide the hardware for a MYR2 billion ($494.3 million) sovereign AI initiative.

Bloomberg reported the country is leaning towards Huawei to drive its AI efforts, in a move which would prove unpopular with the US government but be a significant victory for Chinese AI technology.

Malaysia outlined a digital transformation project in October 2025 involving numerous initiatives including adopting blockchain, quantum computing and AI to give it more control over national data, while pledging to establish itself as an “AI nation by 2030”.

Bloomberg reported Huawei could provide the backbone for the push in what it believes would be the first known instance a foreign government opted for Chinese AI technology over US options.

If Malaysia did push ahead with Huawei’s technology, Bloomberg noted Prime Minister Anwar Ibrahim would effectively be defying US efforts to control global AI infrastructure and warnings not to buy from the vendor.

Malaysia is apparently assessing Huawei’s Ascend 910C product rather than the more advanced Ascend 950, which is limited in production.

The outlet recently reported Huawei is vying to build a data centre for the Egyptian government.

Huawei is racing to catch up to US rivals in the development of AI computing platforms, outlining its roadmap in 2025 and revealing plans to release “the world’s most powerful single system” in the fourth quarter this year.

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