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Bloomberg
12-08-2025
- Business
- Bloomberg
Bloomberg Intelligence: China Urges Companies Not to Use Nvidia's H20 Chips
Watch Paul LIVE every day on YouTube: Bloomberg Intelligence hosted by Paul Sweeney and Norah Mulinda - Ed Ludlow, Bloomberg Technology Co-Host, discusses Beijing urging local companies to avoid using Nvidia Corp.'s H20 processors, particularly for government-related purposes. Chinese authorities have sent notices to firms discouraging use of the H20 processors for government or national security-related work, but the notices did not constitute an outright ban. - Kenneth Shea, Bloomberg Intelligence Senior Consumer Products Analyst, discusses the cannabis industry. According to BI: Cannabis producers like Curaleaf and Tilray might to turn to asset sales, spinoffs or M&A, amid weak valuations and our analysis finding scant economic value added. - Anurag Rana, Bloomberg Intelligence Technology Analyst, discusses Elon Musk accusing Apple Inc. of favoring OpenAI, saying Apple makes it impossible for anyone other than OpenAI to reach the top of the App Store charts. -Erik Schatzker, Editorial Director, Bloomberg New Economy, discusses the Bloomberg Big Take story: 'Scott Bessent on Tariffs, Deficits, and Trump's Economic Plan.'
Yahoo
12-08-2025
- Business
- Yahoo
China urges local firms not to use Nvidia's H20 chips, Bloomberg News reports
(Reuters) -Chinese authorities have urged local companies to avoid using Nvidia's H20 chips, particularly for government-related purposes, Bloomberg News reported on Tuesday, a move likely to hamper the company efforts to service the key China market. Several companies were sent official notices discouraging the use of the H20, a less-advanced chip, mainly for any government or national security-related work by state enterprises or private companies, the report said, citing people familiar with the matter. Reuters could not immediately confirm the report. Nvidia said on Tuesday the H20 chip was "not a military product or for government infrastructure". "China has ample supply of domestic chips to meet its needs. It won't and never has relied on American chips for government operations, just like the U.S. government would not rely on chips from China," the statement said. Washington last month lifted a ban on the sale of the H20 chip in China and it is now the most advanced artificial intelligence chip that Nvidia is allowed to sell there. The move comes after reports in China's state media of security concerns around H20 chips. Nvidia has said there are no "backdoors" that would allow remote access or control. Beijing is pressuring China's large tech firms such as Alibaba and ByteDance over orders of H20 chips, the Financial Times reported on Tuesday. The companies have been asked by the Ministry of Industry and Information Technology to explain why they need to order H20 chips instead of using domestic alternatives, the report said, citing people familiar with the matter. Some tech companies were planning to reduce their orders as a result of the questions from regulators, the report said. The Information reported the companies along with Tencent Holdings, have been ordered by China's internet regulator in the past two weeks to suspend their purchases of Nvidia chips altogether, citing data security concerns with the chips. The directive came from the Cyberspace Administration of China and was communicated at a meeting the regulator convened with over a dozen Chinese tech firms, shortly after the Trump administration reversed the export curbs on H20 chips, according to the report. The regulator told the companies that new chip purchases had to be suspended until it concluded an investigation into potential security risks from the chips, according to the report, which cited people familiar with the matter. Alibaba, ByteDance and Tencent did not immediately respond to Reuters requests for comments. Nvidia did not immediately respond to a request for comment on The Information's and the Financial Times' reports. China is also trying to promote the use of domestically-developed technologies including AI chips made by Huawei, the Chinese rival with which Nvidia is battling for AI chip dominance. Shares in China's top contract chipmaker SMIC rose 5% on Tuesday on expectations of rising demand for locally-produced chips. The H20 curb also follows comments on Monday from U.S. President Donald Trump, suggesting that he might allow Nvidia to sell a scaled-down version of its advanced Blackwell chip in China, despite deep-seated fears in Washington that Beijing could harness U.S. AI capabilities to supercharge its military. China's foreign ministry said on Tuesday it hoped the U.S. would take practical action to maintain the stability and smooth operation of the global chip supply chain. The Trump administration last week confirmed an unprecedented deal with Nvidia and AMD to give the U.S. government 15% of revenue from sales of some advanced chips in China. China's renewed guidance on avoiding chips also affects AI accelerators from Advanced Micro Devices, the Bloomberg report said, adding that it was unclear whether any notices from Chinese authorities specifically mentioned AMD's MI308 chip. AMD did not respond to a request for comment outside regular business hours.
CNA
12-08-2025
- Business
- CNA
China urges local firms not to use Nvidia's H20 chips: Report
Chinese authorities have urged local companies to avoid using Nvidia's H20 chips, particularly for government-related purposes, Bloomberg News reported on Tuesday (Aug 12), a move likely to hamper the firm's efforts to revive its slumping China sales. A range of firms were sent official notices discouraging the use of the H20, a less-advanced chip, particularly for any government or national security-related work by state enterprises or private companies, the report said, citing people familiar with the matter. Reuters could not immediately confirm the report. Nvidia said in a statement on Tuesday that the H20 chip was "not a military product or for government infrastructure". "China has ample supply of domestic chips to meet its needs. It won't and never has relied on American chips for government operations, just like the US government would not rely on chips from China," the statement said. Washington last month lifted a ban on the sale of the H20 chip in China, and it is now the most advanced artificial intelligence (AI) chip that Nvidia is allowed to sell there. The move comes after reports in China's state media of security concerns around H20 chips. Nvidia has said there are no "backdoors" that would allow remote access or control. Beijing is pressuring China's large tech firms such as Alibaba and ByteDance over orders of H20 chips, the Financial Times reported on Tuesday. The companies have been asked by the Ministry of Industry and Information Technology to explain why they need to order H20 chips instead of using domestic alternatives, the report said, citing people familiar with the matter. Some tech companies were planning to reduce their orders as a result of the questions from regulators, the report said. Alibaba and ByteDance did not immediately respond to Reuters requests for comments. China is also trying to promote the use of domestically developed technologies, including AI chips made by Huawei, the Chinese rival with which Nvidia is battling for AI chip dominance. Shares in China's top contract chipmaker SMIC rose 5 per cent on Tuesday on expectations of rising demand for locally-produced chips. The H20 curb also follows comments on Monday from US President Donald Trump, suggesting that he might allow Nvidia to sell a scaled-down version of its advanced Blackwell chip in China, despite deep-seated fears in Washington that Beijing could harness US AI capabilities to supercharge its military. China's foreign ministry said on Tuesday it hoped the US would take practical action to maintain the stability and smooth operation of the global chip supply chain. The Trump administration last week confirmed an unprecedented deal with Nvidia and AMD to give the US government 15 per cent of revenue from sales of some advanced chips in China. China's renewed guidance on avoiding chips also affects AI accelerators from Advanced Micro Devices, the Bloomberg report said, adding that it was unclear whether any notices from Chinese authorities specifically mentioned AMD's MI308 chip.
Free Malaysia Today
12-08-2025
- Business
- Free Malaysia Today
China urges local firms not to use Nvidia's H20 chips
The Trump administration green-lighted exports of the H20 AI chip to China last month. (EPA Images pic) BEIJING : Chinese authorities have urged local companies to avoid using Nvidia's H20 processors, particularly for government-related purposes, Bloomberg News reported today, citing people familiar with the matter. 'Authorities have sent notices to a range of firms discouraging the use of the less-advanced semiconductors, with the guidance taking a particularly strong stance against the use of Nvidia's H20s for any government or national security-related work by state enterprises or private companies,' the report said. Reuters could not immediately confirm the report. Nvidia did not immediately respond to a request for comment outside regular business hours. Nvidia said in July that its products have no 'backdoors' that would allow remote access or control after China raised concerns over potential security risks in the chipmaker's H20 artificial intelligence (AI) chip. US President Donald Trump suggested yesterday that he might allow Nvidia to sell a scaled-down version of its next-generation advanced GPU chip, Blackwell, in China, despite deep-seated fears in Washington that China could harness US AI capabilities to supercharge its military. The most advanced chip Nvidia is currently allowed to sell to China is the H20, which is based off the company's older Hopper architecture platform. The Trump administration green-lighted exports of the H20 AI to China last month. The Trump administration last week also confirmed an unprecedented deal with Nvidia and AMD to give the US government 15% of revenue from sales of some advanced chips in China. China's renewed guidance on avoiding chips also impacts AI accelerators from Advanced Micro Devices (AMD), the Bloomberg report said, adding that it was unclear whether any notices from Chinese authorities specifically mentioned AMD's MI308 chip. AMD did not respond to a request for comment outside regular business.
