Chinese government-run media condemns Nvidia H20 GPUs, claiming they are environmentally unfriendly, outdated, and unsafe. Chinese enterprises are advised to steer clear of this particular chip.
In recent developments, Chinese authorities have raised concerns about potential security and geo-tracking risks in foreign technology products, including Nvidia's high-performance chips like the H20. Given the ongoing geopolitical tensions and emphasis on technological self-reliance, China is cautious about relying on critical foreign hardware that might have embedded tracking or security vulnerabilities.
This apprehension has led Chinese regulators and government agencies to encourage domestic firms to adopt homegrown alternatives to reduce dependence on U.S. and other foreign technology suppliers. This policy push supports the development and use of indigenous semiconductor technologies and AI chips from Chinese manufacturers.
However, it's important to note that a WeChat post does not represent a direct commitment from the Chinese government. The post may signal a shift in the government's stance, encouraging its people to use alternative homegrown AI GPUs instead of Nvidia's products.
Despite these concerns, Nvidia's H20 chip has proven to be a commercial success, generating a record revenue for the company. In fact, a billion dollars' worth of these chips were sold in the past quarter.
Despite the chip's commercial success, People's Daily, the official newspaper of the Central Committee of the Chinese Communist Party, has criticized Nvidia's H20 chips as neither technologically advanced nor environmentally friendly. The social media account Yuyuan Tantian, connected to China Central Television, also published an article echoing these sentiments.
Nvidia, on the other hand, has firmly denied any security risks in its GPUs, emphasizing that they have no kill switches, no backdoors, and no spyware. The company has not yet addressed the concerns about possible hidden geo-tracking and backdoors in the Green Team silicon of its H20 chips.
The U.S. Congress introduced a bill in mid-May to enforce location tracking of high-end gaming and AI GPUs. The White House is considering a similar move regarding Nvidia's chips. If enacted, these measures could further strain U.S.-China relations.
In a positive note, some companies are already advertising the upcoming B300 AI chips from Nvidia, expected to arrive later this year. The ecosystem that Nvidia delivers makes its local competitors a less compelling alternative.
This situation reflects the complex and evolving relationship between technology, geopolitics, and economic interests. It remains to be seen how these developments will unfold in the coming months.
Artificial intelligence and technology continue to be key areas of concern for Chinese authorities, pushing domestic firms to embrace homegrown alternatives to foreign technology. Despite the success of Nvidia's H20 chip, concerns about potential security risks, geo-tracking, and lack of environmental friendliness persist, sparked by criticism from various Chinese sources.
