Chinese authorities have initiated a cybersecurity investigation into Nvidia's H20 AI chip, which was designed specifically for the local Chinese market. The probe cites concerns over potential security risks and aims to protect cyberspace and data security for Chinese users. Nvidia must demonstrate that both its chips and intentions are free from security threats. The H20 chip had reportedly received export approval from the Trump administration, but shipments to China have been delayed due to turmoil within the U.S. Commerce Department, including staff resignations, firings, and communication breakdowns affecting export license processing. The situation occurs amid broader U.S.-China tech tensions, with American export bans on Nvidia’s H20 chips impeding China’s AI advancements. Additionally, scrutiny from the Committee on Foreign Investment in the United States (CFIUS) has affected related tech companies due to concerns over Chinese ties, exemplified by Cerebras’s customer relationship with G42 and its past connections to Huawei.
CHINESE AUTHORITIES’ PROBE INTO NVIDIA’S H20 CHIPS IS JUSTIFIED, AIMING TO PROTECT CYBERSPACE AND USER DATA SECURITY. NVIDIA MUST PROVE ITS CHIPS AND INTENTIONS ARE CLEAN.
China Daily Editorial: The Chinese authorities' looking into the #H20 matter is fully justified and aimed at safeguarding cyberspace and data security for Chinese users. #Nvidia needs to prove both its chips and intentions are clean. #chip #ChinaDailyEditorial https://t.co/t6JtmN91F1
Nvidia’s H20 chip shipments to China are being held up by turmoil in the US Commerce Department, which issues export licenses, Reuters reports, noting 1000s of applications from many companies are held up by staff resignations, firings, poor communication, and a failure to issue