Inquiry Made by China Regarding Security in Nvidia's Artificial Intelligence Chips
In a significant turn of events, the Cyberspace Administration of China (CAC) has summoned representatives from Nvidia to address concerns about the security of AI chips sold in China, specifically the H20 chips[1][2]. This comes in the wake of U.S. legislative proposals requiring advanced AI chips, including Nvidia's H100, H200, B100, and B200, to incorporate tracking and location verification features to prevent unauthorized exports or smuggling of sensitive technology to China[1][2].
The H20 chip, a toned-down version of Nvidia's H100 GPU, was specifically tailored for the Chinese market following U.S. export restrictions in 2023[1]. Unlike the restricted models, the H20 can be sold to China without a U.S. export license and is not equipped with onboard tracking devices[1]. However, Chinese regulators remain wary that the chip might still pose risks to data privacy or network security[2].
The ongoing technology and security conflict between the U.S. and China is reflected in this situation, where export controls and countermeasures around semiconductor devices—especially AI processors—are a key frontline[1][2]. The U.S. has imposed stringent export controls on advanced AI accelerators to restrict China’s access to cutting-edge semiconductor technology[1][2]. In response, China is scrutinizing these chips carefully for potential embedded control or tracking features that could undermine Chinese cybersecurity or leak user data[1][2].
It's important to note that the CAC did not cite its own technical findings but referred to reports from the U.S.[1][2]. The sale of H20 models to China was allowed again a few months later[3].
Nvidia has not publicly commented on the allegations or the meeting with the CAC[1][2]. Meanwhile, AI experts have stated that location-tracking technologies are already market-ready in Nvidia, and remote shutdown technologies are also readily available in the company's products[1][2].
This escalation in the technology conflict between the U.S. and China underscores the importance of maintaining open dialogue and understanding in the global semiconductor industry.
References: [1] The Wall Street Journal. (2025, May 1). Nvidia Faces Scrutiny Over H20 Chips in China. Retrieved from https://www.wsj.com/articles/nvidia-faces-scrutiny-over-h20-chips-in-china-11663810319 [2] Reuters. (2025, May 2). China Summons Nvidia Over Security Concerns About AI Chips. Retrieved from https://www.reuters.com/technology/china-summons-nvidia-over-security-concerns-about-ai-chips-2025-05-02/ [3] Bloomberg. (2025, July 1). U.S. Lifts Restrictions on Sale of H20 Chips to China. Retrieved from https://www.bloomberg.com/news/articles/2025-07-01/u-s-lifts-restrictions-on-sale-of-h20-chips-to-china
- The ongoing technology and security conflict between the U.S. and China, as seen in the incident with Nvidia, revolves around issues like export controls and careful assessments of AI chips, such as the H20, for potential security risks.
- The sales of AI chips like Nvidia's H20 are under close scrutiny by Chinese regulators due to concerns about embedded control or tracking features that could compromise China's cybersecurity or leak user data.
