The Strategist

China's digital regulator warns of Nvidia chip loopholes



08/01/2025 - 06:29



According to a report by CNBC, China's Cyberspace Administration (CAC) has expressed worries about national security regarding Nvidia Corp.'s H20 chips, based on information from the regulatory authority.



Will Buckner
Will Buckner
The CAC stated that the semiconductor manufacturer was requested to “offer explanations and pertinent supporting documents concerning security threats, including potential vulnerabilities and backdoors (intentionally inserted by the creator to access a device or data), linked to its H20 computer chips sent to China.”

The regulator highlighted details regarding significant security flaws in Nvidia's AI chips and complaints from U.S. lawmakers for required tracking capabilities in high-tech chips exported overseas.

He claims that American AI specialists discovered that Nvidia chips incorporate advanced “tracking and positioning” and “remote shutdown” features.

The H20 is a simplified version of Nvidia's leading Hopper AI chips, created exclusively for the Chinese market because of Washington's export limitations.

In April, the US administration under President Donald Trump effectively prohibited Nvidia from selling the H20, but reversed this decision in July.

The firm requires US government permits to ship the H20. In mid-July, it stated that the government had guaranteed they would be released shortly.

source: reuters.com