Nvidia Denies Security Risks in H20 Chips Amid Tensions with China.

Nvidia responds to Chinese accusations that its H20 AI chips pose a security risk. A spokesperson says the company does not have "backdoors" in its chips that would give anyone remote access or control. The H20 chip was developed for the Chinese market after initial export restrictions on advanced AI chips in late 2023. US export controls on Nvidia chips are rooted in national security concerns that Beijing could use the chips to gain an advantage in AI and military applications.

Nvidia has responded to recent accusations from Chinese state media that its H20 AI chips pose a security risk. A spokesperson for the company has categorically denied the claims, stating that Nvidia does not have "backdoors" in its chips that would allow anyone remote access or control [1]. The H20 chip was specifically designed for the Chinese market following initial export restrictions on advanced AI chips in late 2023 [2].

The accusations come from a social media account affiliated with China's state broadcaster, CCTV, which cited concerns over backdoor access and the chip's lack of technological advancement and environmental friendliness [1]. Nvidia has maintained that its products are secure and do not contain any such vulnerabilities.

The export controls on Nvidia chips are rooted in national security concerns that Beijing could use the chips to gain an advantage in AI and military applications. The Trump administration initially banned the sales of H20 chips to China in April but reversed the ban in July [2]. The ban had caused significant financial strain on Nvidia, with the company anticipating an $8 billion revenue shortfall from China in the affected period [3].

Nvidia has since received US approval to export its H20 AI chips to China, boosting investor confidence [3]. Analysts maintain an "Outperform" rating on Nvidia, with an average price target suggesting moderate growth and a significant upside potential of 56.47% from the current market price [3].

The company's stance on government surveillance access to its chips has also drawn attention. Nvidia has firmly rejected any proposals to include backdoors or remote kill switches in its GPUs, arguing that such measures would compromise trust in U.S. technology [3].

The decision to allow H20 chip exports to China reflects a more nuanced U.S. approach to technology exports, distinguishing between highly sensitive components and those deemed less of a national security threat [3]. The H20 chip, while powerful, is not as advanced as previous models and does not fall under the most restricted categories of export controls.

Nvidia's denial of security risks in its H20 chips aligns with broader industry resistance to proposals for software backdoors, as seen in Apple's long-standing opposition to such measures [3].

References:
[1] https://nypost.com/2025/08/10/business/chinese-state-media-says-nvidia-h20-chips-not-safe-for-china/
[2] https://www.business-standard.com/world-news/chinese-state-media-flags-security-risks-in-nvidia-h20-ai-chips-125081000592_1.html
[3] https://www.ainvest.com/news/nvidia-h20-chip-export-approval-china-boosts-investor-confidence-2508/