- Nvidia -chips that have been examined as China questions access to H20 in H20 -hardware
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Nvidia’s position in the global AI hardware market could soon be under control after news of a Cyberspace Administration of China study.
The Chinese regulator has called on the US chipmaker to explain potential “backdoor” risks in its H20 chips specifically developed to China after exporting restrictions on the first sales of advanced AI processors.
The concern stems from US regulatory movements that propose location verification systems on chips intended for exports that Chinese authorities fear can compromise data sovereignty and users’ privacy.
Mounting Suspicion
While Nvidia has denied the existence of such vulnerabilities, the Chinese government’s decision to interrogate the question introduces a new layer of uncertainty in the company’s already complex relationship with the second largest market.
The regulator has not detailed any specific actions it plans to take, but the call to clarify potential security errors suggests that the company’s access to Chinese institutions may face added friction.
Nvidia’s official attitude has remained consistent: Its chips do not contain any embedded features that may allow remote access or control.
In its own words, “cybersecurity is critically important to us,” and there are no “back doors” in Nvidia hardware.
However, this insurance may not be enough to change growing skepticism, especially as the US and Chinese policies on technology exports continue to differ.
Meanwhile, Chinese analysts have suggested that the move could be a political gesture, and reflection relates to the United States traveling about Chinese tech in recent years.
What is noted is that Nvidia, even in the midst of rising tension, continues to see a robust demand for the H20 chip in China.
The company has allegedly ordered 300,000 units from TSMC, reflecting the chip’s ongoing relevance to Chinese developers, research institutes and universities, all of which are very dependent on high performance AI chips to drive local progress.
Even military and state-sponsored projects are known for using NVIDIA technology.
Despite public optimism and high-profile visits by NVIDIA administrative director Jensen Huang to China, the broader legislative environment is increasingly unpredictable.
The regulator also examines the acquisition of the Israeli chip designer, Mellanox Technologies, and claimed that Nvidia violated some of the conditions in the 2020 -related approval of the agreement.
Uncertainty about supply chain, potential import limits or changes in licensing rules can ultimately affect the availability and cost of hardware.
As both nations dig deeper into their technology state, NVIDIA’s global leadership within AI hardware is no longer guaranteed to become undisputed.
Via Cygenws and Pakinomist
