China Discourages Use of Nvidia's H20 Chips Amid Security Concerns

Chinese authorities have advised local companies against using Nvidia's H20 processors, especially for government-related tasks, due to security concerns. The guidance targets both state enterprises and private firms. Nvidia denies any security vulnerabilities. Meanwhile, discussions continue about allowing Nvidia limited sales in China amidst U.S.-China technology tensions.

Chinese government officials have reportedly advised domestic companies to refrain from utilizing Nvidia's H20 processors for governmental purposes. This guidance, as reported by Bloomberg News, is aimed at minimizing security concerns associated with these semiconductors.

The notices strongly discourage the use of Nvidia's H20 processors, especially in projects linked to government or national security, impacting both state enterprises and private ventures. Huawei has yet to confirm this report, and Nvidia has not commented outside its regular business hours.

Amid these developments, Nvidia has refuted claims about potential security vulnerabilities in its H20 AI chips. Meanwhile, remarks by U.S. President Donald Trump suggest a conditional allowance for Nvidia to market a simplified version of its advanced GPU chip in China, a move that could alter the scale of U.S.-China tech competition.

(With inputs from agencies.)