AI Arms Race: Huawei Bids to Supply Ascend Chips to Egypt

Chinese tech giant Huawei has pitched a proposal to the Egyptian government to build specialized data centers for artificial intelligence. This project is part of the company’s global strategy to promote its own AI chips on the international stage.

The Huawei Plan

A 12-month timeline is proposed to achieve full infrastructure deployment. The technical proposal includes the export of the following hardware:

• 1,408 Ascend 950 processors designed for AI model training;
• 600 Ascend 910B processors for running these models.

If approved, this would mark the first major international contract for the export of these Ascend chips, cementing Huawei’s position as a primary technology partner in Africa’s second-largest economy.

US Government Response

The Donald Trump administration is actively opposing the deal. US officials have reached out to tech leaders, including Microsoft, NVIDIA, and AMD, to propose a consortium that would offer a competitive alternative to the Chinese bid. The US Department of State has already warned the international community that using Huawei hardware without Washington’s licenses could lead to legal sanctions.

In an official statement, the State Department emphasized that the US is actively engaging with nations worldwide to promote American leadership in AI technology, which, according to the agency, ensures security and respects national sovereignty.

Security Concerns

The Huawei project involves iFlytek, a Chinese surveillance company under US sanctions since 2019. The service package includes:

• A facial and license plate recognition system integrated with the national population database;
• A unified real-time monitoring platform displayed on panoramic screens.

Notably, the 102-page project presentation contained examples of software usage featuring identifiers from China’s Ministry of Public Security.

Huawei’s project in Egypt extends far beyond simple hardware supply. For the Chinese company, it represents an opportunity to strengthen its foothold in the global AI market and showcase the competitiveness of its chips outside China. For Egypt, choosing such a partner could carry significant geopolitical risks, including potential US restrictions and limited access to American technology ecosystems.