Latest news with #Cyberspace Administration of China
France 24
01-08-2025
- Business
- France 24
Nvidia says no 'backdoors' in chips as China questions security
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".
Fast Company
31-07-2025
- Business
- Fast Company
Nvidia denies its chips have backdoors after China raises security risks over H20
Nvidia said on Thursday its products have no 'backdoors' that would allow remote access or control after China raised concerns over potential security risks in the firm's H20 artificial intelligence chip. The Cyberspace Administration of China, the country's internet regulator, said it was concerned by a U.S. proposal for advanced chips sold abroad to be equipped with tracking and positioning functions. The CAC's move cast uncertainty over the U.S. company's sales prospects in China weeks after a U.S. export ban was reversed. The regulator said it had summoned Nvidia to a meeting on Thursday to explain whether its H20 AI chip had any backdoor security risks, as it was worried that Chinese user data and privacy rights could be affected. A backdoor risk refers to a hidden method of bypassing normal authentication or security controls. In a statement, an Nvidia spokesperson said, '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.' The White House and both houses of U.S. Congress have proposed the idea of requiring U.S. chip firms to include location verification technology with their chips to prevent them from being diverted to countries where U.S. export laws ban sales. The separate bills and White House recommendation have not become a formal rule, and no technical requirements have been established. Nvidia has been a focus of U.S.-China relations, and China's move comes shortly after the U.S. this month reversed an April ban on Nvidia selling the H20 chip to China. The company developed the H20 chip for the Chinese market after the U.S. imposed export restrictions on advanced AI chips in late 2023. 'Nvidia chips are now dispensable for China. They can be easily put on the negotiating table,' said Tilly Zhang, an analyst with Gavekal Dragonomics. 'China obviously has more courage and domestic substitution capabilities compared to previous years to not rely on overseas technology.' This month, Nvidia CEO Jensen Huang embarked on a public and effusive visit to China, where he sought to demonstrate his commitment to the Chinese market, met with government officials, and praised the country's AI advances. The CAC statement did not elaborate on what backdoor security risks there could be or say what the Chinese government was considering doing as a result. Strong demand Charlie Chai, an analyst with tech- and consumer-focused 86Research, said Beijing's warning was likely a symbolic stance against similar objections made by U.S. authorities. 'However, we do not believe Beijing will make excessively harsh demands or introduce regulatory hurdles that will effectively drive Nvidia out of China, for the lack of alternatives. China still needs Nvidia chips for domestic research and applications,' Chai said. Nvidia's products are highly sought after not just by Chinese tech companies but also by Chinese military bodies, state-run AI research institutes, and universities. The company last week placed an order with contract manufacturer TSMC for 300,000 H20 chipsets due to strong demand, Reuters reported. Chinese authorities and industry associations have in the past accused U.S. tech companies of posing security risks, with varying consequences. In early 2023, China barred key operators of the country's infrastructure from purchasing from Micron, saying that a review it conducted had found the U.S. memory chipmaker's products posed serious security risks. Last year, the Cybersecurity Association of China, an industry group, called for Intel products sold in China to be subject to a security review, but Chinese regulators have not publicly responded. Nvidia is also facing an antitrust investigation in China. The State Administration for Market Regulation announced late last year it was investigating the chipmaker over suspected violations of the country's anti-monopoly law. The regulator said Nvidia was also suspected of violating commitments it made during its acquisition of Israeli chip designer Mellanox Technologies, under terms outlined in the regulator's 2020 conditional approval of that deal.
