Malaysia is considering Huawei’s Ascend 910C AI accelerator for a national AI project valued at about 2 billion ringgit ($494 million), a move that could make it the first foreign government to officially choose Chinese-made AI chips over American alternatives. The project, to be operated by state-owned Telekom Malaysia, aims to keep sensitive government, military and intelligence data inside the country. Malaysia has not finalized purchase volumes, and the newer Ascend 950 series is viewed as less viable because production remains limited. The proposal has drawn U.S. warnings over export controls and data security, while Prime Minister Anwar Ibrahim has criticized the U.S. CLOUD Act as an obstacle to digital sovereignty. Malaysian officials are also reviewing tender procedures that could enable companies such as Nvidia to compete more directly, and National Security Council officials are scheduled to visit Washington later this month.