Malaysia First Country to Utilize Huawei’s Ascend Chips Outside China, Risking US Export Control Policies

Malaysia is making significant strides in the artificial intelligence sector by initiating a comprehensive AI infrastructure project aimed at fostering a self-sufficient ecosystem, with substantial support from Chinese technology.

Strategic Collaboration with Chinese AI Technology

The AI landscape is evolving rapidly, with numerous governments now actively participating in the AI revolution. As highlighted by Jensen in his keynote at Computex, the emphasis on developing robust AI infrastructure is nearing the importance of traditional power grids. A recent report by MCIGroup suggests that the Malaysian government is taking proactive steps to “localize”AI innovations. This involves setting up domestic servers to preserve data integrity while enhancing Malaysia’s status in the global tech arena.

The special thing about this project is that the data will be stored in Malaysia, it will be managed by Malaysians, and it will be used by Malaysians as well, so this is how we can actually safeguard our AI sovereignty.

– Malaysia

Pioneering Use of Huawei AI Chips

In an intriguing development, Malaysia is poised to become the first country to implement Huawei’s AI chips in this groundbreaking initiative. Although the government has not explicitly confirmed this, it has mentioned being the first nation outside of China to utilize these chips and DeepSeek LLM models, hinting that Huawei’s Ascend accelerators could be at the forefront of this technology deployment. This decision raises questions about potential violations of U. S.export controls, which impose restrictions on entities utilizing Huawei technology.

Huawei Preps Ascend 910C To Tackle NVIDIA's H100 In China's Domestic AI Market 1

Geopolitical Implications and Trade Concerns

Malaysia’s history of navigating the “dual-ball”approach raises eyebrows, especially given previous accusations of the nation exporting NVIDIA’s AI chips to China through U. S.trade loopholes. Reports suggest that local entities have been sending AI chips and servers to China without any immediate violations until U. S.authorities identified these loopholes. Now, with Malaysia’s engagement with Huawei’s technology, the nation might be subject to increased scrutiny, particularly from the U. S.administration.

This dalliance with Huawei chips outside China highlights NVIDIA’s growing competition in the Chinese market, and it indicates that Huawei may further extend its reach beyond its own borders. Notably, Huawei’s rack-scale solutions, like the CloudMatrix 300, are reported to rival NVIDIA’s offerings, such as the Blackwell series, positioning Huawei as a formidable contender in the global AI race.

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