Malaysia Probes Chinese AI Chip Use and Targets Telegram Over Harmful Content

Malaysia Investigates AI Activities and Takes Action Against Telegram

Malaysia is currently scrutinizing reports about AI operations involving a Chinese firm using advanced servers equipped with Nvidia chips to train large language models. The Ministry of Investment, Trade and Industry confirmed it is verifying whether any domestic laws have been violated in connection with these activities.

The scrutiny intensified after reports revealed that Chinese engineers arrived in Malaysia carrying suitcases filled with hard drives, aiming to develop AI models in local data centers. This activity comes amid restrictions imposed by the U.S. government on exporting sophisticated AI chips to certain countries, including Malaysia, which was subject to caps on chip imports. Although some curbs have been lifted, U.S. guidance still requires licenses if AI chips are suspected to be used for developing weapons of mass destruction.

Regulatory Action Against Telegram

Separately, Malaysia’s communications authority obtained a temporary court order against Telegram and two of its channels for allegedly sharing content that violates national laws. The Malaysian Communications and Multimedia Commission (MCMC) cited the platform’s failure to address repeated reports of harmful content on the channels named “Edisi Siasat” and “Edisi Khas.”

The harmful content was deemed capable of undermining public trust in national institutions and disrupting social harmony. A Malaysian high court granted an interim injunction to stop further dissemination of this content and prevent its reappearance. Details about the specific nature of the content were not disclosed, and Telegram has yet to respond to requests for comment.

Ensuring Fair Legal Process

The MCMC emphasized that Telegram will be given a fair chance to defend itself, consistent with principles of justice and fundamental rights. This action follows Malaysia’s introduction of a new social media law in January, which requires platforms with over 8 million Malaysian users to obtain a license or face legal consequences.

The law targets rising cybercrime linked to social media, including online gambling, scams, child exploitation, cyberbullying, and content affecting race, religion, and royalty.

Implications for Operations Professionals

For those managing operations in tech or regulatory environments, Malaysia’s approach highlights the increasing scrutiny on AI infrastructure and digital platforms. It underscores the importance of compliance with export controls, data privacy, and content regulations.

Operations teams working with AI technologies should monitor evolving regulations closely and ensure that hardware imports and data processing activities meet local legal requirements. Similarly, managing communication channels and user-generated content must align with national laws to avoid legal risks.

Staying informed about such developments is crucial for operational continuity and risk management. For practical AI training resources that can help teams adapt to these challenges, explore Complete AI Training's latest courses.