China Advises Against Nvidia's H20 Chip for Government Use
Chinese authorities have urged companies to avoid using Nvidia's H20 chips for government purposes, possibly affecting Nvidia's China market. Despite U.S. lifting a sales ban, Beijing questions tech firms on their H20 chip purchases amid security concerns. The move favors domestic chip suppliers like Huawei and SMIC.
Chinese authorities have advised local firms to steer clear of using Nvidia's H20 chips, especially for government-related tasks, Bloomberg News reported on Tuesday. This directive poses a challenge to Nvidia's efforts to cater to the crucial China market.
Official notices discourage utilizing the H20 chip, a less advanced model, for any state or national security purposes. Meanwhile, Nvidia maintains that the H20 isn't intended for military or government infrastructure. U.S. recently lifted the sales ban on this advanced AI chip, but security concerns persist in China.
In response, Beijing pressures tech giants like Alibaba and ByteDance to justify their H20 orders. The Cyberspace Administration of China is conducting an investigation into potential risks, as Huawei and SMIC capitalize on rising local demand. Meanwhile, U.S. President Trump hints at potential trade-offs with Nvidia over AI chip sales.
(With inputs from agencies.)
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