Microsoft continues AI infrastructure deployment in Malaysia

US tech giant Microsoft said its artificial intelligence (AI) infrastructure rollout in Malaysia remains on track despite concerns over potential disruptions in the supply of advanced AI chips.

The company is monitoring developments related to U.S. export restrictions on semiconductor technology, but that its operations in Malaysia have not been affected, Microsoft Malaysia managing director Laurence Si told a press conference on Thursday.

Microsoft’s investments in Malaysia, including the upcoming cloud region launch, are proceeding as planned. It is committed to deploying AI services and digital infrastructure on schedule, ensuring Malaysia benefits from the latest technological advancements, he added.

Concerns over AI chip supply have grown following Microsoft’s announcement of its in-house Azure Cobalt 100 chip, designed to enhance AI capabilities.

Asked whether Malaysia’s cloud region would use the latest AI chips, Si said Microsoft is assessing market demand.

If there is a market for it, it will be incorporated into the framework and timeline for Malaysia, he said, adding that there is already industry interest in AI-optimised chipsets like Cobalt

In a related news, Prime Minister Anwar Ibrahim has emphasized the importance of developing local talent in blockchain technology to ensure that investments in the sector benefit Malaysians.

The matter was discussed during a courtesy visit on March 20 from representatives of Klickl, a company operating finance and assets within the digital and blockchain ecosystem, he said in a Facebook post.

Anwar noted that Malaysia has significant potential in the field and can leverage blockchain technology across various sectors. Beyond finance and digital assets, he said the technology could also be utilised in government services and the halal industry.