The demand for Chips is so high, that Malaysia is reportedly considering Huawei chips for a $494 million sovereign AI project, despite explicit US warnings against the hardware.

Bloomberg reports that the country is evaluating Huawei’s Ascend 910C accelerators, with state-linked Telekom Malaysia selected as the project’s key operator.

The priority is keeping sensitive government, military and intelligence data under Malaysian control. Huawei already supplies technology for Telekom Malaysia’s cloud infrastructure, although its current AI computing service uses Nvidia chips.

China is no longer just developing its own AI models, but is increasingly becoming a chip producer that, although lagging significantly behind NVIDIA, is able to produce chips well enough itself.