Egypt weighs Huawei AI data centre bid amid US-China tech rivalry

September 4, 2026 at 05:37 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Huawei has submitted a tender to build Egypt's AI data centres, offering 1,408 Ascend 950 processors and 600 older chips. The US State Department is preparing a counteroffer through Nvidia, AMD, and Microsoft. Egypt receives $1.3bn annually in US military aid while deepening economic ties with China.

Key Facts

Huawei proposed supplying 1,408 Ascend 950 processors and 600 Ascend 950 or 910B chips for two computing clusters in Egypt.
The US State Department is working on a counteroffer through Nvidia, Advanced Micro Devices, and Microsoft, according to Bloomberg sources.
Egypt receives roughly $1.3bn a year in US military aid and remains a major American defence partner.
US private AI investment reached $285.9bn in 2025, compared with China's $12.4bn, according to Stanford University's 2026 AI Index Report.
Xi Jinping's visit to Egypt was his first trip to the Middle East in four years and first to Egypt in a decade.

Huawei's Bid

Huawei has offered to supply 1,408 Ascend 950 processors for AI model training, plus 600 Ascend 950 or older 910B chips, to build two computing clusters in Egypt. The company proposed a 12-month build timeline for the project. If the deal proceeds, it would mark the first known export of Huawei's Ascend AI processors, according to documents reviewed by Bloomberg. The infrastructure housing the AI chips would be used for military, surveillance, and other public-sector operations, Bloomberg reported.

US Counteroffer

The US State Department is preparing a counteroffer to Huawei's AI chip bid through companies including Nvidia, Advanced Micro Devices, and Microsoft, according to anonymous sources quoted by Bloomberg. The US remains Egypt's major defence partner, providing roughly $1.3bn in annual military aid. Egypt has been steadily deepening its economic and military ties with China in recent years. Whoever wins the contract to build the data centres will gain an opportunity to strengthen political and economic ties with Egypt.

AI Investment Landscape

China and the United States are leading globally in AI development and investment, with the gap between the two economies narrowing fast. US firms poured $285.9bn into private AI investment in 2025, against China's $12.4bn, according to Stanford University's 2026 AI Index Report. Xi Jinping's three-day visit to Egypt coincided with the 70th anniversary of diplomatic relations between the two nations. The visit was Xi's first trip to the Middle East in four years and his first to Egypt in a decade.