Nvidia's H20 Chips Under Scrutiny: China's Security Concerns Rise

Nvidia is under scrutiny as China's cyberspace regulator probes the U.S. semiconductor giant over security risks associated with its H20 artificial intelligence chips. The inquiry comes amid concerns that these chips might have backdoor vulnerabilities that could compromise Chinese user data and privacy rights. The meeting between Nvidia and the Cyberspace Administration of China highlighted the tense regulatory environment surrounding U.S.-China tech relations.

The scrutiny intensified after U.S. lawmakers urged the implementation of tracking capabilities in advanced chips exported abroad, raising fears of increased surveillance. Despite Nvidia not immediately responding to inquiries, the regulatory pressure remains high, especially following a recent reversal of a U.S. ban on exporting H20 chips to China.

Nvidia's challenges are compounded by an ongoing antitrust investigation in China, related to its acquisition of Mellanox Technologies. The State Administration for Market Regulation is examining potential breaches of China's anti-monopoly law and the terms of Nvidia's previous commitments. Amid strong Chinese demand, Nvidia has ordered 300,000 H20 chipsets, signaling its strategic reliance on the market.

(With inputs from agencies.)