China Summons Chip Giant Nvidia Over Alleged Security Risks
Nvidia is a world-leading producer of AI semiconductors, but the United States effectively restricts which chips it can export to China on national security grounds.
A key issue has been Chinese access to the "H20", a less powerful version of Nvidia's AI processing units that the company developed specifically for export to China.
The California-based firm said earlier this month that it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports.
But the firm still faces obstacles -- US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities.
And on Thursday, Beijing's top internet regulator said it had summoned Nvidia representatives to discuss recently discovered "serious security issues" involving the H20.
The Cyberspace Administration of China said it had asked Nvidia to "explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials".
The statement posted on social media noted that, according to US experts, location tracking and remote shutdown technologies for Nvidia chips "are already matured".
The announcement marked the latest complication for Nvidia in selling its advanced products in the key Chinese market, where it is in increasingly fierce competition with homegrown technology firms.
CEO Jensen Huang said during a closely watched visit to Beijing this month that his firm remained committed to serving local customers.
Huang said he had been assured during talks with top Chinese officials during the trip that the country was "open and stable".
"They want to know that Nvidia continues to invest here, that we are still doing our best to serve the market here," he said.
Nvidia this month became the first company to hit $4 trillion in market value -- a new milestone in Wall Street's bet that AI will transform the global economy.
New hurdles to the firm's operation in China come as the country's economy wavers, beset by a years-long property sector crisis and heightened trade headwinds under US President Donald Trump.
Chinese President Xi Jinping has called for the country to enhance self-reliance in certain areas deemed vital for national security -- including AI and semiconductors -- as tensions with Washington mount.
The country's firms have made great strides in recent years, with Huang praising their "super-fast" innovation during his visit to Beijing this month.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
21 hours ago
- Int'l Business Times
Nvidia Says No 'Backdoors' In Chips As China Questions Security
Nvidia chips do not contain "backdoors" allowing remote access, the US tech giant has said, after Beijing summoned company representatives to discuss "serious security issues". The California-based company is a world-leading producer of AI semiconductors, and this month became the first company to hit $4 trillion in market value. But it has become entangled in trade tensions between China and the United States, and Washington effectively restricts which chips Nvidia can export to China on national security grounds. "Cybersecurity is critically important to us. Nvidia does not have 'backdoors' in our chips that would give anyone a remote way to access or control them," Nvidia said in a statement Thursday. A key issue has been Chinese access to the "H20" -- a less powerful version of Nvidia's AI processing units that the company developed specifically for export to China. Nvidia said this month it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports. But the tech giant still faces obstacles -- US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities. Beijing's top internet regulator said Thursday it had summoned Nvidia representatives to discuss recently discovered "serious security issues" involving the H20. The Cyberspace Administration of China said it had asked Nvidia to "explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials". China is aiming to reduce reliance on foreign tech by promoting Huawei's domestically developed 910C chip as an alternative to the H20, said Jost Wubbeke of the Sinolytics consultancy. "From that perspective, the US decision to allow renewed exports of the H20 to China could be seen as counterproductive, as it might tempt Chinese hyperscalers to revert to the H20, potentially undermining momentum behind the 910C and other domestic alternatives," he said. Other hurdles to Nvidia's operations in China are the sputtering economy, beset by a years-long property sector crisis, and heightened trade headwinds under US President Donald Trump. CEO Jensen Huang said during a visit to Beijing this month that the company remained committed to serving local customers, adding that he had been assured during talks with top Chinese officials that the country was "open and stable".
Int'l Business Times
21 hours ago
- Int'l Business Times
US Tech Titan Earnings Rise On AI As Economy Roils
Tech giants Amazon, Apple, Meta and Microsoft this week eclipsed earnings expectations, cashing in on artificial intelligence (AI) while navigating economic waters roiled by US tariffs. "Massive results seen by Microsoft and Meta further validate the use cases and unprecedented spending trajectory for the AI Revolution on both the enterprise and consumer fronts," Wedbush tech analyst Dan Ives said in a note to investors. "We have barely scratched the surface of this 4th Industrial Revolution now playing out around the world led by the Big Tech stalwarts such as Nvidia, Microsoft, Palantir, Meta, Alphabet, and Amazon," Ives added. Amazon reported a 35 percent jump in quarterly profits as the e-commerce giant said major investments in AI technology are paying off. "Our conviction that AI will change every customer experience is starting to play out," said Chief Executive Andy Jassy, pointing to the company's expanded Alexa+ service and new AI shopping agents. But the Seattle-based company's profit outlook for the current quarter came in lower than hoped for, with investors worried that the cost of AI was weighing on the bottom line. This was despite a stellar second quarter that exceeded analyst expectations, much like it did for its AI-focused rivals Google, Microsoft and Meta, which posted bumper results for the period. Amazon's net sales climbed 13 percent, signaling that the company was so far surviving impacts of the high-tariff trade policy under US President Donald Trump. Amazon Web Services (AWS), the company's world-leading cloud computing division, led the charge with sales jumping 17.5 percent to $30.9 billion. Its strong performance reflects surging demand for cloud infrastructure to power AI applications, a trend that has benefited major cloud providers as companies race to adopt generative AI technologies. Shares of Microsoft spiked Thursday following blowout quarterly results, lifting the tech giant into the previously unprecedented $4 trillion club along with Nvidia, another AI standout. The landmark valuation is the latest sign of growing bullishness about an AI investment boom that market watchers believe is still in the early stages -- even as companies like Microsoft plan $100 billion or more in annual capital spending to add new capacity. "Cloud and AI is the driving force of business transformation across every industry and sector," said Microsoft CEO Satya Nadella. At the heart of the results was a stunning surge in Azure, the company's cloud computing platform, which is getting "supercharged" with AI, said Angelo Zino, technology analyst at CFRA Research. Zino attributed "just about all of" Microsoft's recent climb in valuation to AI. Meta reported robust second-quarter financial results Wednesday, with revenue jumping 22 percent year-over-year as the social media giant continues investing heavily in artificial intelligence. "We've had a strong quarter both in terms of our business and community," said CEO Mark Zuckerberg. "I'm excited to build personal superintelligence for everyone in the world." Zuckerberg has embarked on a major AI spending spree, poaching top researchers with expensive pay packages from rivals like OpenAI and Apple as he builds a team to pursue what he calls AI superintelligence. Hours before the earnings report, Zuckerberg insisted that the attainment of superintelligence -- technology that would theoretically be more powerful than the human brain -- is now "in sight." Meanwhile Apple, which is seen as lagging in the AI race, beat expectations with earnings driven by strong iPhone sales despite US tariffs costing the company $800 million in the recently-ended quarter. Apple expects Trump's tariffs to cost the iPhone maker $1.1 billion in the current quarter. "The results show that Apple's iPhone strategy is working to offset the impact of looming challenges with AI development timelines, tariff pressures, and Google's antitrust issues," said Emarketer tech analyst Jacob Bourne. Apple chief executive Tim Cook said on an earnings call that taking the most advanced technologies and making them easy to use is "at the heart of our AI strategy." Cook said Apple has been rolling out Apple Intelligence AI features and is "making good progress on a more personalized Siri."
Int'l Business Times
a day ago
- Int'l Business Times
Heathrow Unveils GBP49 Bn Expansion Plan For Third Runway
London's Heathrow Airport on Friday unveiled a GBP49-billion ($65 billion) expansion plan, including the costs of building a long-awaited third runway, approved by the UK government after years of legal wrangling. The runway would cost GBP21 billion, with flights expected to take off within a decade, while the rest of the privately-funded investment will go toward expanding and modernising the airport. Heathrow, Europe's busiest airport by passenger numbers, said the expansion would provide at least 30 new daily routes, more domestic connections and improved flight times. The increased capacity would almost double the number of annual passengers from 84 million currently to up to 150 million passengers annually. "It has never been more important or urgent to expand Heathrow," said chief executive Thomas Woldbye. "We are effectively operating at capacity to the detriment of trade and connectivity," he added. Despite fierce opposition from environmentalists and local residents, the London mayor Sadiq Khan and some Labour MPs, the Labour government backed the new runway in January in a bid to boost UK economic growth. It would be a rare expansion in Europe, where countries are split between efforts to reduce greenhouse gas emissions and the needs of a strategic sector that has seen demand grow. Heathrow has submitted its proposal for the 3,500 metre runway to the UK government, which has also invited a rival proposal. Heathrow's proposal includes GBP12 billion to fund a new terminal and GBP15 billion for modernisation. "A third runway and supporting infrastructure can be ready within a decade, and the full investment across all terminals would take place over the coming decades," Heathrow said in a statement. UK Prime Minister Keir Starmer is determined to deliver major infrastructure projects to revive the UK economy that has struggled to take off since the party came to power a year ago. The government is expected to also back expansion at Gatwick airport, south of the capital, in October -- having recently approved upgrades to London's Stansted, Luton and City airports. Britain's Supreme Court ruled at the end of 2020 that Heathrow could build the third runway, overturning a legal decision to block construction on environmental grounds. Local residents "will see their lives put on hold for a few more years while more money and time is wasted on a doomed scheme," said Douglas Parr, policy director for Greenpeace UK. He added the plans "export more tourism wealth out of the UK in the most polluting way possible." Arora Group, one of Heathrow's largest landowners, on Thursday said it will submit a rival bid to build a shorter third runway, promising lower costs and less disruption to local residents and the environment. "This is the first time the government has invited a competing proposal for Heathrow expansion," the UK-based property and hotel firm said in a statement. Airport-owner Heathrow's latest investment proposal comes in addition to plans to invest GBP10 billion over the next five years in upgrades to boost passenger numbers, which would be largely funded by higher charges on airlines. Local residents have fought against a third runway at Heathrow, arguing their lives are already blighted by noise and pollution from Europe's busiest air hub in passenger numbers AFP
