31-07-2025
China Questions Nvidia H20 Chip Security, Summons Company for Talks
China's cyberspace regulator summoned Nvidia (NVDA, Financials) to explain possible security risks in its H20 artificial intelligence chip, injecting new uncertainty into the U.S. chipmaker's China sales. Officials want to know if the chip contains tracking or backdoor features that could compromise user privacy.
Warning! GuruFocus has detected 5 Warning Signs with NVDA.
The move follows a U.S. proposal to require location?tracking in advanced AI chips shipped overseas, part of Washington's push to limit Chinese access to high?end semiconductor technology. It also comes just weeks after the U.S. reversed an April ban on Nvidia selling the H20 in China.
Nvidia created the H20 specifically for the Chinese market after U.S. export curbs in 2023. Demand has been strong Reuters reported the company recently ordered 300,000 units but political friction remains high. Nvidia is also under antitrust investigation in China.
This article first appeared on GuruFocus.
