Trending 
Chinese authorities have summoned US chipmaker Nvidia to address what they described as serious security concerns linked to some of the company’s artificial intelligence (AI) processors sold in China, escalating tensions in the ongoing tech standoff between Washington and Beijing.
China’s Cyberspace Administration said on Thursday it had called in Nvidia representatives to provide an explanation over alleged “vulnerabilities and backdoors” discovered in its H20 chips. These chips are a toned-down version of Nvidia’s high-powered AI units, created specifically for the Chinese market following US export restrictions.
According to the regulator, the company has been asked to detail the security risks and submit supporting evidence related to the issues. The administration also referred to claims by US experts that technologies enabling location tracking and remote shutdown of Nvidia chips are already well-developed.
The move adds another layer of complexity to Nvidia’s attempts to do business in China. While the company announced earlier this month that it would resume H20 chip sales following the lifting of some US licensing barriers, it still faces potential new legislation from American lawmakers that could require advanced chipmakers to embed tracking functions into their products.
During a recent trip to Beijing, Nvidia CEO Jensen Huang reiterated the company’s commitment to the Chinese market, saying local officials assured him of a stable and open business environment. He also praised the rapid innovation of China’s tech sector.
Nvidia recently became the first company to surpass a $4 trillion market valuation, driven by strong investor belief in the transformative power of AI. However, geopolitical tensions and growing Chinese efforts to boost domestic semiconductor production present fresh challenges for the company.
Beijing has increasingly stressed the importance of technological self-sufficiency, particularly in critical fields like AI and chipmaking, amid ongoing frictions with the US and broader economic uncertainty.
