China's Cyberspace Administration has summoned Nvidia to address potential security risks associated with its H20 artificial intelligence chips. The inquiry focuses on concerns that the chips may contain vulnerabilities, including tracking and remote shutdown capabilities, which could pose threats to user data and privacy. Nvidia has been requested to provide detailed explanations and relevant documentation regarding these security aspects.
This development follows the recent reversal of U.S. export restrictions, allowing Nvidia to resume sales of the H20 chips to China. The chips were specifically designed to comply with previous U.S. export controls and have been in high demand among Chinese tech companies for AI applications. Despite the lifting of the ban, the security concerns raised by Chinese authorities have introduced new challenges for Nvidia in the region.
In response to the strong demand, Nvidia has placed an order for additional H20 chips with Taiwan Semiconductor Manufacturing Co. to meet the needs of Chinese clients. However, the ongoing scrutiny over security features may impact the company's ability to fulfill these orders promptly. Nvidia has yet to publicly comment on the latest developments regarding the security concerns raised by Chinese regulators.