China Accuses Nvidia of H20 Chip Backdoor Amid Export Tensions
China’s Cyberspace Administration (CAC) has summoned U.S. chipmaker Nvidia over alleged security vulnerabilities in its artificial intelligence (AI) chips, a move that could complicate Nvidia’s efforts to re-establish sales in the Chinese market. The summons comes shortly after Washington approved the export of Nvidia’s H20 chip, specifically designed for China.
On Thursday, the CAC announced it held a meeting with Nvidia to address what it termed “serious security issues” with the company’s AI chips. The regulator cited reports from U.S. AI experts alleging that Nvidia’s computing chips possess location tracking capabilities and can be remotely deactivated. The CAC has requested Nvidia provide an explanation for these security concerns regarding the H20 chip and submit supporting documentation.
The H20 chip was developed by Nvidia to comply with U.S. export restrictions targeting advanced AI technology for China. The announcement from Beijing follows Washington’s recent decision to lift a ban on H20 sales, allowing Nvidia to restart its business in the country. Following this policy shift, Nvidia CEO Jensen Huang visited Beijing, meeting with officials and customers. During his visit, Huang underscored Nvidia’s commitment to the Chinese market and introduced a new graphics processing unit (GPU) from the latest Blackwell series, also tailored to align with existing U.S. export controls.
Paul Triolo, a China tech expert and partner at DGA-Albright Stonebridge Group, expressed skepticism regarding the claims of a deliberate backdoor in Nvidia’s hardware, noting the lack of specific details in the CAC’s announcement. The Chinese regulator did not specify which experts discovered the alleged backdoor or whether any tests conducted in China had corroborated these findings. Nvidia has not yet responded to requests for comment.
This development unfolds amidst broader geopolitical tensions in the technology sector. U.S. lawmakers have voiced concerns about chip smuggling and have introduced legislation that would mandate chipmakers like Nvidia to embed location tracking into export-controlled hardware. Concurrently, Beijing has informally advised major Chinese tech companies to increase their procurement of domestic AI chips, aiming to reduce reliance on foreign suppliers like Nvidia and foster a homegrown chip ecosystem. Chinese tech giants such as Huawei, along with smaller firms like Biren and Cambricon, have reportedly benefited from this push for supply chain localization.
Industry insiders suggest considerable uncertainty among Chinese customers regarding the stability of H20 sales, particularly the risk of potential U.S. policy reversals. Nvidia estimates it would take nine months from resuming manufacturing to shipping the H20 to clients. The decision to allow H20 sales has drawn criticism from some U.S. security experts and former officials, who argue it could accelerate China’s AI development and pose a threat to U.S. national security. As Triolo observed, “There are strong factions on both sides of the Pacific that don’t like the idea of renewing H20 sales,” with opposition in the U.S. driven by security concerns, and some voices in China arguing it could slow the transition to a fully domestic alternative ecosystem.