China summons Nvidia over AI chip security concerns

China has summoned US semiconductor giant Nvidia over what it describes as “serious security issues” with its artificial intelligence (AI) chips.

The Cyberspace Administration of China (CAC) announced on Thursday that it held a meeting with Nvidia, demanding an explanation for alleged problems with the company’s H20 chips.

These chips were specifically designed for the Chinese market to comply with US export restrictions. The CAC cited claims from “US AI experts” who “revealed that Nvidia’s computing chips have location tracking and can remotely shut down the technology.” Nvidia has been asked to submit documentation to address these concerns.

This development comes shortly after Washington lifted a ban on H20 chip sales to China, prompting Nvidia CEO Jensen Huang to visit Beijing to meet officials and customers. During his visit, Huang emphasized Nvidia’s commitment to the Chinese market and introduced new graphics processing units designed to comply with US export controls.

However, the CAC’s sudden intervention casts a shadow over these efforts. Paul Triolo, a China tech expert and partner at DGA-Albright Stonebridge Group, expressed scepticism about the claims of a deliberate backdoor, noting the lack of specific detail from the CAC regarding the experts or tests involved.

Meanwhile, lawmakers in Washington have voiced concerns about chip smuggling and proposed legislation requiring location tracking in export-controlled hardware. Beijing has also informally encouraged major Chinese tech firms to increase purchases of domestic AI chips to reduce reliance on foreign suppliers and bolster its own chip ecosystem, benefiting local companies like Huawei, Biren, and Cambricon.

The situation highlights the ongoing tension in the global semiconductor landscape, with strong factions on both sides of the Pacific holding differing views on the resumption of H20 sales.