Nvidia, the US. tech giant riding the global AI boom, is facing a fresh challenge - this time from China.
The country’s top internet watchdog/ China’s top cybersecurity regulator has summoned the company over concerns that its advanced H20 AI chips, developed specifically for the Chinese market, may contain hidden security backdoors.
The investigation, launched by the Cyberspace Administration of China (CAC), puts Nvidia at the center of deepening tensions between Washington and Beijing over control of critical technologies. According to sources familiar with the matter, the CAC launched the formal inquiry to investigate whether Nvidia’s China-specific H20 chips contain hidden backdoors that could compromise national data security. The chips were developed by Nvidia to meet US. export restrictions, offering powerful AI capabilities while staying within regulatory limits.
But Beijing is now asking: What exactly is inside?
The probe reflects China’s growing wariness of foreign tech embedded in its AI infrastructure and an effort to tighten control over critical data pathways. It also highlights the narrowing room Nvidia has to operate in a country that was once one of its biggest markets.
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China is moving to restrict domestic technology companies from acquiring Nvidia’s H20 artificial intelligence chips thus highlighting the escalating technology rivalry between Beijing and Washington.
Chinese authorities have summoned major tech firms, including Tencent and ByteDance, over their purchases of Nvidia’s H20 AI chips, raising concerns about information security and urging companies to rely on domestic suppliers amid escalating regulatory scrutiny.
Nvidia’s (NVDA.O) H20 chips present security risks for China, according to a social media account linked to Chinese state media, which made the claim on Sunday after Beijing raised concerns about potential backdoor access in the chips.
Nvidia has received approval from the U.S. government to sell its advanced H20 AI chips to China, CEO Jensen Huang announced.
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