China Scrutinizes Nvidia's H20 Chips Amid Security Concerns

Chinese authorities have summoned major tech firms to explain their purchases of Nvidia's H20 chips, citing security risks. The Cyberspace Administration of China expressed concerns regarding sensitive data and encouraged firms to choose domestic suppliers. Nvidia clarified that H20 is not a military product.

In a sweeping move, Chinese authorities have summoned major domestic tech firms, including Tencent and ByteDance, over their acquisition of Nvidia's H20 chips. The Cyberspace Administration of China (CAC) and other agencies met with these companies, raising concerns about potential information risks and urging them to consider domestic alternatives.

Authorities questioned the necessity of using Nvidia chips, especially when local options are available, and expressed anxiety over sensitive data being submitted for U.S. government reviews. Despite the concerns, firms haven't been ordered to halt their purchases. Nvidia insists that the H20 chip isn't meant for military or governmental infrastructure use.

The ongoing scrutiny reflects broader tensions between the U.S. and China as both nations seek to maintain control over advanced technology. While the Chinese government underscores the importance of self-reliance in chip manufacturing, Nvidia's presence in the market faces jeopardy, potentially impacting the company's significant revenue stream from China.

(With inputs from agencies.)