Nvidia faces other headaches when the Chinese government asks local companies not to use H20 AI GPU which is cleaned by the US government

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After the news about Trump’s administration which collected a 15% commission about NVIDIA and AMD chip sales to China, the sources quoted by Bloomberg claimed that the Chinese government was increasingly anxious to use American AI chips, especially for security and government work. Nvidia and AMD have begun to receive their GPU AI chip export licenses, and because of their dominance in the AI chip industry, Nvidia has been watched by China for potential backdoors and tracking software in its products. While the company has denied this claim, fear of relying on foreign AI chips seems to stimulate the opposition of the Chinese government of AI hardware sourced from foreigners.

The Chinese government urges companies not to rely on GPU H20 AI Nvidia, reports

Today’s report follows the previous news last month, which outlines that Chinese cyber security officials are investigating the Nvidia H20 AI Chip for potential backdoors and location tracking mechanisms. While Nvidia has just begun to receive a license to sell GPU H20 in China, previous restrictions imposed on sales by Trump’s administration produced a large -magnitude speculation about chips leading to countries through other countries such as Singapore and Malaysia.

As a result, speculation grows about Trump’s administration who asked Nvidia to include location tracking in his chip to ensure their final destination reliably. However, Nvidia strongly denied that every backdoor or tracking mechanism was in her chip because it aims to continue the sales of her Chinese after receiving the US export license earlier this month.

However, regardless of Nvidia guarantees, it seems that Chinese authority continues to remain skeptical about company chips. According to Bloomberg, the authorities have sent letters to several Chinese companies to urge them not to rely on GPU H20 AI Nvidia, especially when it comes to government or national security applications. The source of publication added that while AMD’s AI Accelerator is also part of the government’s concern, it is unclear whether they involve a series of broader AMD chips or Mi308 accelerators.

Not only the Chinese government is worried about the security implications of using foreign sources chips, but also afraid of blocking the domestic chip industry. The Chinese government wants local companies to rely on domestic AI chips, and as a result, it encourages them to avoid Nvidia products. The leading AI Chip China was developed by Huawei, but because of US sanctions about the manufacturing of chips, they were left behind Nvidia products in terms of performance. In addition, Cuda Nvidia software to use its chips is also in front of Huawei offers.

While Trump’s administration initially prohibited H20 sales to China, it turned around after heeding Nvidia CEO argument Jensen Huang to ensure US dominance throughout the global AI industry. Officials argue that they serve the interests of the US so that China uses American chips to withstand any income that can be transferred to Huawei and assist in developing sophisticated chips.