Malaysia walks back from AI project with Huawei: Report

By Berk Kutay Gokmen

ISTANBUL (AA) – Malaysia has walked back from an artificial intelligence (AI) project that involved the use of Huawei Technologies equipment, the South China Morning Post reported on Thursday.

The development came after the Chinese technology giant denied exporting its Ascend chips to Malaysia, highlighting the sensitivity on both sides as the US moves to block the use of Huawei AI chips.

Malaysia had launched its Strategic Artificial Intelligence Infrastructure project, utilizing Huawei chips and servers for the first time outside of China, according to Malaysia’s Deputy Communications Minister Teo Nie Ching in an interview with the state news agency Bernama.

Later, Malaysia's Ministry of Investment, Trade, and Industry said the AI infrastructure project with Huawei was "not developed, endorsed, or coordinated by the government," effectively distancing itself from the deal.

The US Department of Commerce recently issued guidelines warning of regulatory action against anyone using Huawei’s Ascend chips, claiming that they violate US export controls.

In response, China's Ministry of Commerce announced on Wednesday that it will use its anti-sanction law to target those enforcing US sanctions on Huawei’s AI chips.

Huawei has kept a low profile with its AI chips, providing no public updates on progress or production.

In a statement to the South China Morning Post, the company said it "does not sell Ascend chips in Malaysia, and the Malaysian government has not ordered Ascend chips from Huawei."