The global race for artificial intelligence dominance is expanding across Africa, with Egypt emerging as a new battleground in the technology rivalry between the United States and China.
Chinese technology giant Huawei has submitted a proposal to build AI data centres for the Egyptian government, with the project expected to deploy more than 2,000 of its advanced Ascend processors. The deal would give Huawei a significant foothold in one of Africa’s largest economies.
Washington is now seeking to counter the proposal, with the US State Department approaching Nvidia, Advanced Micro Devices (AMD) and Microsoft to form an American consortium that could challenge Huawei for the project.
The competition extends beyond a single data centre contract, putting Egypt at the centre of a broader contest over who will provide the chips, cloud infrastructure and software that will power the next generation of AI systems across Africa and other emerging markets.
Although the proposed order is modest compared with the massive computing clusters being developed by major US technology companies, it could hold significant strategic value for Huawei.
The Chinese company has spent more than a year seeking to expand sales of its AI processors beyond its domestic market.
A successful contract in Egypt could therefore represent the first known overseas deployment of Huawei’s Ascend accelerators, while demonstrating the company’s ability to compete for sovereign AI projects despite years of US restrictions on its access to advanced semiconductor technology.
Egypt could also serve as a major African showcase for Huawei as Cairo advances its national AI strategy, which targets a 7.7 per cent contribution to GDP by 2030, while the country remains heavily reliant on foreign suppliers for advanced processors.
Washington Rallies US Technology Giants
Egypt’s dependence on advanced technology has raised the stakes for Washington, prompting the Trump administration to approach Nvidia, AMD and Microsoft about developing a competing American proposal.
However, details of the potential US offer remain unclear, including the hardware that could be supplied, financing arrangements and any restrictions on how the technology would be used.
Microsoft declined to comment on the discussions, while Nvidia and AMD did not respond to requests for comment cited in reports.
A US State Department spokesperson, meanwhile, said Washington was discussing American AI technology with dozens of countries and was prepared to work with governments on AI development while respecting national sovereignty.
The intervention highlights how AI infrastructure is increasingly becoming a tool of both economic and geopolitical influence.
Surveillance Technology Raises the Stakes
Huawei’s proposal reportedly goes beyond AI computing infrastructure, extending into surveillance technology developed in partnership with iFlytek.
The package reportedly includes vehicle and individual recognition systems connected to Egypt’s national population database, adding another layer of sensitivity to the proposed deal.
Both Huawei and iFlytek have been on US trade restriction lists since 2019. Washington has also warned that using certain Huawei AI accelerators without approval could result in penalties under its export-control rules.
Egypt Caught Between Two AI Ecosystems
The restrictions give Washington considerable leverage, as shipments of advanced American AI chips to Egypt have required US government approval since 2023.
Cairo is therefore faced with balancing its need for advanced computing infrastructure against the geopolitical risks associated with choosing between American and Chinese technology.
The outcome could become an early test of how African countries navigate the widening US-China divide over AI infrastructure and determine which technology ecosystem will play a greater role in powering the continent’s emerging AI economy.
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