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Nvidia asks suppliers to stop H20 AI chip production amid Chinese concerns.
ByAinvest
Friday, Aug 22, 2025 2:46 pm ET1min read
Nvidia has asked suppliers to halt production of its H20 AI chip, following Chinese officials' concerns over security risks. Nvidia CEO Jensen Huang is discussing the issue with China, while Meta has frozen its AI hiring spree and is hiring Apple's Frank Chu for its Superintelligence Labs. Elon Musk tried to enlist Mark Zuckerberg for his bid to acquire OpenAI, but Zuckerberg declined.
Nvidia (NVDA) has ordered a halt to production of its H20 AI chip, following Chinese officials' concerns over security risks. The tech giant has instructed some component suppliers to suspend work related to the H20 chip, which is specifically designed for the Chinese market to comply with U.S. exports curbs [1]. This move comes weeks after the Chinese government encouraged local companies to stop buying the H20 chips, citing alleged security concerns.Nvidia's stock was indicated slightly lower overnight, with shares dipping 0.2% to 174.98 on Thursday, holding below the 21-day moving average [1]. The company will report fiscal Q2 earnings on Aug. 27.
Meanwhile, Nvidia CEO Jensen Huang is discussing the issue with Chinese officials. The company is reportedly working on a new chip for China, dubbed the B30A, which will be more advanced than the H20. Huang said he is in "dialogue" with the U.S. government about offering this new product to China [2].
Meta has frozen its AI hiring spree but is continuing to hire talent from Apple. The company has hired Frank Chu, who has led Apple AI teams focused on cloud infrastructure, training, and search, for its Superintelligence Labs [4].
Elon Musk recently tried to enlist Mark Zuckerberg for his bid to acquire OpenAI, but Zuckerberg declined. This move highlights the ongoing tensions between the two tech giants.
References:
[1] https://www.investors.com/news/technology/nvidia-halts-h20-production-beijing-directive-ai-chip/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619
[2] https://www.cnbc.com/2025/08/22/nvidia-in-talks-with-us-to-sell-more-advanced-chip-to-china-huang.html
[4] https://9to5mac.com/2025/08/21/meta-poaches-yet-another-ai-researcher-from-apple-the-sixth-in-seven-weeks/
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