China's Directive on Nvidia's H20 Chips Raises Industry Concerns

Chinese authorities reportedly advised companies to steer clear of using Nvidia's H20 AI chips, especially for government-related functions. This stems from security concerns over such technology. Nvidia countered by stressing that their chips lack any exploitative backdoors. The decision reflects ongoing US-China technology tensions.

Chinese authorities have reportedly instructed local companies to abstain from using Nvidia's H20 AI chips in government-related applications due to security concerns, according to a Bloomberg report.

Nvidia refuted the claims, stating their products have no "backdoors." This guidance highlights the ongoing tech tensions between the U.S. and China.

The most advanced chip Nvidia can currently sell to China is the H20; however, the U.S. allowed scaled-down exports, amid fears of bolstering China's military capabilities.

(With inputs from agencies.)