Nvidia Faces Scrutiny Over Security Concerns in China

Nvidia is under pressure to provide convincing security proofs to alleviate Chinese users' fears about its chip security. China's state-run media emphasized the need for foreign companies to comply with local laws, following concerns about potential backdoor risks in Nvidia's H20 AI chip.

Nvidia is facing calls from Chinese authorities to provide "convincing security proofs" to address concerns over potential security vulnerabilities in its chips. The demand, highlighted in a commentary by China's state-run People's Daily, underscores the importance of cybersecurity for foreign companies operating in China.

The commentary, published on People's Daily's social media account under the title "Nvidia, how can I trust you?", emphasized that compliance with Chinese laws and ensuring security should be fundamental for such companies. Nvidia's spokesperson reiterated the company's commitment to cybersecurity, stating there are no 'backdoors' in its chips that could be exploited for unauthorized access.

The scrutiny comes as uncertainties arise over Nvidia's sales in China, following Beijing's concerns about the firm's H20 AI chip. The Cyberspace Administration of China has requested Nvidia to clarify if the chip has hidden vulnerabilities that could compromise Chinese user data and privacy.

(With inputs from agencies.)