China Probes Nvidia H20 Chips Over Security Concerns

Nvidia faces heightened scrutiny from Chinese regulators over its H20 AI chips, as the Cyberspace Administration of China (CAC) has raised concerns about potential backdoors and security vulnerabilities. The CAC has summoned Nvidia to provide clarifications and documentation regarding the risks associated with the chips, including allegations of remote tracking and deactivation features. The investigation follows a meeting between Nvidia and Beijing officials on July 31, where the company reiterated its commitment to cybersecurity and denied any such vulnerabilities in its products [1].

The H20 chips, a less powerful variant of Nvidia’s flagship AI accelerators, are designed to comply with U.S. export restrictions while still meeting the demand for AI hardware in China. However, the recent regulatory probe suggests that even these modified chips may face challenges in the region. Chinese officials have cited concerns from U.S. legislators, including Republican Senator Tom Cotton, who have pushed for mandatory security features in advanced semiconductor exports [2].

In response, Nvidia has denied allegations of backdoors and emphasized its adherence to strict security standards. A company spokesperson stated that “cybersecurity is of the utmost importance” and that the chips do not allow for unauthorized remote access or control [3]. The firm is currently engaging in technical discussions with Chinese regulators to address these concerns and ensure compliance with national security requirements.

The investigation comes amid broader U.S.-China tensions in the tech sector, with Beijing increasingly focused on securing its digital infrastructure and reducing dependence on foreign technology. Analysts suggest that the CAC’s actions reflect a strategic effort to assert control over critical sectors, particularly those involving artificial intelligence [4].

If regulators impose further restrictions or demand modifications to the H20 chips, it could impact Nvidia’s market access and revenue in China. The company has previously announced plans to resume H20 chip sales in the country after receiving U.S. approval, but the ongoing probe adds uncertainty to its strategy. For now, Nvidia continues to work closely with Chinese authorities to resolve the issue, maintaining its stance on transparency and compliance [5].

Sources:

[1] China probes Nvidia over H20 chip "backdoor" risks (https://www.digitimes.com/news/a20250731VL223/nvidia-sales-ai-chip-chips-security.html)

[2] China summons Nvidia over H20 chip security days after (https://businessmirror.com.ph/2025/07/31/china-summons-nvidia-over-h20-chip-security-days-after-us-talks/)

[3] No 'backdoors' in our chips, says Nvidia (https://gbcode.rthk.hk/TuniS/news.rthk.hk/rthk/en/component/k2/1816148-20250801.htm?spTabChangeable=0)

[4] US-China Tech Rivalry Deepens as Nvidia Called to (https://coincentral.com/china-nvidia-h20-chip-security-risks/)

[5] Nvidia H20 AI Chips Face Beijing Scrutiny Over Security (https://www.webpronews.com/nvidia-h20-ai-chips-face-beijing-scrutiny-over-security-risks/)