China summons Nvidia over 'serious security concerns' with its chips

Chinese internet security authorities have summoned representatives of American technology giant Nvidia to discuss the "serious security issues" recently revealed about its H20 artificial intelligence chips, as the world leader in the sector finds itself embroiled in the trade war between Beijing and Washington.

The Cyberspace Administration of China reportedly asked Nvidia to "explain the security risks of vulnerabilities and backdoors in its H20 chips sold in China and submit related supporting documentation."

The announcement, posted on social media, marked the latest complication for Nvidia in selling its advanced products specifically for the Chinese market, where it faces increasingly fierce competition from local players. The California-based company is a world leader in AI semiconductors, but the United States effectively limits the chips it can export to China for national security reasons. A key issue has been China's access to "H20," a less powerful version of AI processing units. In early July, Nvidia said it would resume sales of H20 in China after Washington pledged to remove licensing restrictions that had blocked exports.

The company, however, still faces challenging hurdles: US lawmakers have proposed plans to require Nvidia and other advanced AI chipmakers to include built-in location tracking capabilities. During his recent visit to China, Nvidia CEO Jensen Huang said the company remained committed to serving local customers and had received adequate assurances in discussions with senior Chinese officials that the country is "open and stable." The company, also in July, became the first company in the world to surpass $4 trillion in market value, driven by expectations that artificial intelligence will transform the global economy. President Xi Jinping has called on the country to strengthen self-sufficiency in sectors considered vital to national security, including artificial intelligence, amid rising tensions with Washington.