Nvidia recently received assurances from U.S. authorities that it can resume exports of its H20 general processing units to China, following a previous effective ban in April. However, these chips are now facing heightened scrutiny from Beijing. The Cyberspace Administration of China (CAC) announced that Nvidia met with officials to address alleged national security concerns tied to H20 chips. The CAC requested Nvidia to provide documentation on security risks, citing potential vulnerabilities and backdoors linked to these chips sold to China.
Concerns about security vulnerabilities were highlighted by CAC, referencing recent calls from U.S. lawmakers for mandatory tracking features on advanced chips exported from the U.S. The regulator mentioned that American AI experts indicated Nvidia’s chips possess technologies for tracking, positioning, and remote shutdown capabilities. This aligns with a separate report indicating that Democrat Bill Foster is preparing legislation that would require AI chipmakers, including Nvidia, to incorporate built-in location reporting systems.
Foster’s legislation could also empower U.S. officials to remotely disable chips that are being used unlawfully, aiming to combat chip smuggling and exploit loopholes in export controls. Nvidia’s technology is believed to have much of this tracking capability already integrated.
In light of these developments, some U.S. lawmakers have expressed concerns regarding the rollback of restrictions on Nvidia’s H20 chips, fearing that it could enhance China’s AI capabilities. Despite the challenges, Nvidia placed orders for 300,000 H20 chipsets with TSMC, signaling its intent to meet demand from the Chinese market. Nvidia has not responded to requests for comments on these issues.
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