Chinese authorities summon Nvidia over accusations of secret access paths, or backdoors, in AI chips bound for China.
The Cyberspace Administration of China (CAC) has initiated an investigation into Nvidia over allegations of potential backdoor security risks in their H20 AI chips. This scrutiny comes as Beijing has intensified its focus on foreign silicon slipping past the firewall.
On July 31, 2025, Nvidia officials were summoned by the CAC to provide explanations and supporting evidence regarding the presence of backdoor tracking, positioning, or remote control functions in the H20 chips. These concerns stem from reports suggesting that advanced Nvidia chips might incorporate technologies developed in compliance with the U.S. Chip Security Act and related export controls.
The investigation is ongoing and poses a significant threat to Nvidia's business in China, a critical market for the company. The CAC's statement alleges that Nvidia's chips contain mature "tracking and positioning" and "remote shutdown" technologies, which could potentially pose national security risks.
The H20 chip is part of Nvidia's China-specific product line, designed to bypass US trade restrictions implemented in 2023. It is based on Nvidia's Hopper architecture but with trimmed-down specs to comply with US export restrictions.
Nvidia has maintained that cybersecurity is critically important to them, and they do not have 'backdoors' in their chips that would give anyone a remote way to access or control them. In response to the investigation, they have been engaging with Chinese officials to demonstrate their commitment to the market.
Interestingly, the CAC's statement likely refers to the introduction of the Chip Security Act in the U.S., which calls for mandatory GPS-style tracking to be embedded in every AI chip exported from the United States. The U.S. government quietly reversed an export ban on Nvidia's H20 AI chips, but it remains unclear whether this decision has been communicated to the CAC.
Last week, an estimated $1 billion worth of Nvidia AI chips, including banned models like the B200, H10, and H200, were found in China's black market. The CAC claims there are "serious security vulnerabilities" in Nvidia's high-performance computing chips, but the company has yet to provide concrete evidence to support these claims.
As the investigation continues, Nvidia's operations in China are facing regulatory scrutiny tied to national data security concerns. The outcome of this investigation could have significant implications for the tech giant in the Chinese market.
- The ongoing investigation by the Cyberspace Administration of China (CAC) into Nvidia's H20 AI chips highlights a growing interest in cybersecurity within the realm of politics and technology, as China intensifies its focus on foreign silicon slipping past its firewall.
- Ai technology and its associated risks, such as the potential presence of backdoor security risks in Nvidia's H20 AI chips, have become a crucial aspect of general-news discussions, affecting finance and business strategy in critical markets like China.
- The controversy surrounding Nvidia's allegedly secure chips, and the claims of mature "tracking and positioning" and "remote shutdown" technologies, has underscored the need for stringent cybersecurity measures in the finance and technology sectors, prompting further scrutiny and regulatory action.
