Nvidia denies "backdoor" concerns in H20 chips amid Chinese scrutiny

In a swift response to concerns raised by China's internet regulator, Nvidia has firmly denied the presence of any "backdoors" in its H20 artificial intelligence chips. This comes after the Cyberspace Administration of China (CAC) reportedly summoned Nvidia representatives to address allegations that the chips could compromise user data and privacy.

The CAC's concerns, voiced last week, reportedly stemmed from a U.S. proposal to equip advanced chips sold overseas with "tracking and positioning functions," and claims from unidentified U.S. AI experts about "mature tracking and positioning" and "remote shutdown" technologies within Nvidia's chips.

However, an Nvidia spokesperson, in a statement released on Thursday, July 31st, directly countered these assertions: "Cybersecurity is critically important to us. Nvidia does not have 'backdoors' in our chips that would give anyone a remote way to access or control them." This statement was reiterated to multiple media outlets as the company sought to allay fears.

The H20 chip was specifically designed by Nvidia to comply with U.S. export restrictions on advanced AI chips, providing a tailored solution for the Chinese market.

The recent reversal of an effective April ban on H20 sales to China had opened a path for Nvidia to re-enter this lucrative market, making the CAC's sudden scrutiny particularly impactful. Nvidia CEO Jensen Huang's recent visit to China had also emphasized the company's commitment to the region.

The incident highlights the ongoing geopolitical tensions and the deep-seated distrust between the U.S. and China in the critical technology sector. China's actions are reminiscent of past measures, such as the ban on Micron Technology products in critical infrastructure, as Beijing increasingly prioritizes national security in its technology procurement.

For Nvidia, maintaining trust and demonstrating transparency in the Chinese market is paramount. The company is now reportedly tasked with providing explanations and "relevant supporting documentation" to the CAC regarding the alleged security risks.

The global semiconductor industry will closely monitor the outcome of this dialogue as it could significantly influence Nvidia's substantial revenue streams from China and set a precedent for other foreign technology companies operating in the country.