Chinese authorities have initiated an unexpected cybersecurity investigation into Nvidia's H20 artificial intelligence chip, which is designed specifically for the Chinese market. The probe, reported by Nikkei, cites concerns over potential security risks and alleged backdoors in the chip. Chinese officials emphasize that the investigation aims to safeguard cyberspace and user data security, requiring Nvidia to demonstrate the integrity of its chips and its intentions. Nvidia has responded by attempting to reassure Chinese regulators about the security of its H20 chips amid ongoing scrutiny. Nvidia's Chief Security Officer, David Reber Jr., has publicly opposed the inclusion of remote shutdown features or secret backdoors in AI chips, describing such mechanisms as invitations to disaster and emphasizing that no secret backdoor can be safely controlled once installed. This stance aligns with broader security expert opinions that backdoors inherently pose vulnerabilities. Meanwhile, Nvidia published a blog post denying the intentional embedding of vulnerabilities in its GPUs. The probe occurs against a backdrop of heightened tensions over semiconductor technology transfers to China, with reports revealing that over $1 billion worth of banned Nvidia B200 GPU racks were smuggled into China within three months, despite U.S. export restrictions imposed since 2022. U.S. authorities recently dismantled a GPU smuggling operation worth over $10 million, leading to charges against two Chinese engineers. The U.S. government had paused approval for the China-compliant H20 chip in May 2025, following earlier blocks on high-end Nvidia silicon exports. This investigation into Nvidia's H20 chip reflects ongoing geopolitical and security challenges surrounding advanced semiconductor technology and AI hardware in the China-U.S. context.