Tensions are rising between China and Nvidia following claims by Chinese authorities that the H20 AI chip, tailored for the Chinese market, contains location-tracking features and remote shutdown capabilities.
The Cyberspace Administration of China (CAC) has demanded that Nvidia provide clarifications and submit documentation regarding these alleged security risks, intensifying scrutiny over the chip’s integrity.
The accusations surfaced after the U.S. lifted a year-long export ban on the H20 chip, allowing Nvidia to resume sales to China. Beijing’s concerns are supported by reports from U.S. AI experts suggesting that Nvidia’s chips include mature mechanisms for tracking and disabling, raising fears of potential espionage or control by foreign entities. This development underscores the ongoing technological rivalry between the two nations.
In a strategic response, Beijing has instructed major Chinese tech conglomerates to ramp up purchases of domestically developed AI chips, aiming to reduce dependence on Nvidia. Companies like Huawei, with its Ascend 910C chip, are expected to gain traction as China pushes for technological self-reliance.
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It’s worth noting that the U.S. Congress has been drafting legislation, such as the proposed Chip Security Act, which would require graphics card manufacturers like Nvidia to embed geolocation tracking and remote-blocking functions in exported chips. Intended to prevent misuse, this law has fueled China’s suspicions, escalating the U.S.-China tech conflict. As both sides dig in, the fate of Nvidia’s H20 in China remains uncertain, with far-reaching implications for the global AI landscape.
