China Probes Nvidia's AI Chip for Security Risks Amid U.S.-China Tech Tensions

China has raised concerns over possible security issues with Nvidia's H20 AI chip, soon after the U.S. export ban was lifted. The Chinese regulator seeks clarification on potential data risks, highlighting ongoing U.S.-China tech tensions affecting Nvidia's business in the region.

China has expressed apprehension about potential security vulnerabilities in Nvidia's H20 artificial intelligence chip, casting doubt on the American company's sales in China. This scrutiny arises weeks after the United States reversed an export ban on these chips.

The Cyberspace Administration of China (CAC), the nation's internet watchdog, voiced concerns regarding U.S. proposals mandating tracking features in exported advanced chips. The CAC has scheduled a meeting with Nvidia to explore potential backdoor security risks associated with the H20 chip, emphasizing risks to Chinese user data and privacy.

Meanwhile, ongoing tensions between the U.S. and China further complicate relations. Nvidia, in the aftermath of U.S. export constraints, is navigating these diplomatic challenges while facing antitrust scrutiny and accusations of breaching commitments on its Mellanox Technologies acquisition.