Chinese regulators have launched an unexpected cybersecurity investigation into Nvidia’s H20 artificial-intelligence chips, saying the processors may contain hidden “backdoors” that threaten national data security, according to statements cited by Nikkei and other outlets. The Cyberspace Administration of China summoned the U.S. chipmaker on 31 July and ordered it to supply technical documentation to prove the chips and the company’s “intentions” are clean. The H20 is a modified version of Nvidia’s Hopper GPU family created to meet U.S. export rules while still serving Chinese cloud and AI customers. Nvidia has told industry analysts it expects about US$15 billion in revenue from China during the second half of 2025, making the probe a potential risk to one of its most important markets. Across the Pacific, the U.S. Justice Department this week charged two Chinese nationals with illegally sending tens of millions of dollars’ worth of Nvidia’s advanced AI chips to China in breach of export restrictions. The suspects were arrested earlier in the week, authorities said. The parallel actions deepen the regulatory and geopolitical headwinds facing Nvidia as Washington and Beijing tighten controls over cutting-edge semiconductors vital to artificial-intelligence development. Neither Nvidia nor Chinese officials have publicly commented in detail on the investigation or the U.S. arrests.