China Probes Nvidia Over Alleged H20 AI Chip's "Backdoor" Security Risks

China's Cyberspace Administration (CAC) is investigating Nvidia over alleged security risks and "backdoor" vulnerabilities in its H20 AI chip. The CAC summoned Nvidia officials to clarify these concerns and submit supporting documentation. This action follows Nvidia CEO Jensen Huang's recent visit to Beijing and ongoing US-China trade discussions. The CAC cited US lawmakers' proposals for chips to have location-tracking features as a basis for their scrutiny. According to the CAC, US AI experts suggest Nvidia chips already possess location-tracking and remote shutdown capabilities. This aligns with a US legislative push requiring security mechanisms like location verification in advanced chips. Nvidia officials were requested to provide technical documents to ensure the absence of backdoors in the H20 chip. Huang has previously denied any security vulnerabilities in his company's products. The investigation occurs after successful lobbying by Huang to ease restrictions on AI chip sales to China, a reversal of a policy aimed at slowing Beijing's military advancements. Some analysts believe this scrutiny could negatively impact Nvidia's market share in China and delay H20 sales due to regulatory uncertainty.