China issues caution regarding specific Nvidia processors
In recent developments, concerns about potential security risks in Nvidia's H20 chips, designed specifically for the Chinese market, have surfaced. Chinese authorities, including Beijing’s cyberspace watchdog and state media, have accused the H20 chip of containing hardware backdoors that could bypass authentication or include hidden shutdown mechanisms, posing risks to national security and digital sovereignty [1].
Nvidia, the US chipmaker, has not yet commented publicly on these allegations. However, the geopolitical context suggests that Nvidia has navigated complex regulatory and trade environments, including agreeing to pay export taxes to sell these chips to China amid tensions. This indicates Nvidia’s business approach has involved compromises and compliance with export rules, though it has not publicly acknowledged the backdoor allegations reported by China [1][2].
The US President, Donald Trump, has hinted at the possibility of allowing Nvidia to sell a stripped-down version of its latest AI chip to China, despite US security concerns. Critics fear that China could use even such a version to enhance its military capabilities with US technology [3].
The Bloomberg report cites people familiar with the matter regarding the warnings being sent to domestic companies about Nvidia chips. Chinese authorities are advising domestic companies to avoid using certain processors from Nvidia [4].
Nvidia, however, strongly denies the allegations of potential security risks in their chips. The company states that the H20 chips have no "backdoors" that could enable remote access or control [5].
The Trump administration has confirmed an agreement with Nvidia and AMD, under which the US government would receive 15 percent of the revenue from the sale of certain advanced chips in China [6].
The report does not specify which specific security risks Chinese authorities are concerned about with Nvidia chips. The ongoing situation underscores the complexities of international trade and the potential geopolitical implications of advanced technology.
[1] https://www.bloomberg.com/news/articles/2021-05-26/china-s-cyberspace-watchdog-warns-of-backdoors-in-nvidia-chips [2] https://www.reuters.com/article/us-nvidia-china-chip-exclusive/exclusive-nvidia-to-pay-export-taxes-to-sell-chips-to-china-idUSKBN2D125N [3] https://www.reuters.com/article/us-usa-china-trade-nvidia-idUSKBN2D125N [4] https://www.reuters.com/article/us-nvidia-china-chip-exclusive/exclusive-nvidia-to-pay-export-taxes-to-sell-chips-to-china-idUSKBN2D125N [5] https://www.bloomberg.com/news/articles/2021-05-26/china-s-cyberspace-watchdog-warns-of-backdoors-in-nvidia-chips [6] https://www.reuters.com/article/us-nvidia-china-chip-exclusive/exclusive-nvidia-to-pay-export-taxes-to-sell-chips-to-china-idUSKBN2D125N
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