China Urges Companies to Steer Clear of Nvidia H20 Chips
Chinese authorities have reportedly advised local firms to avoid using Nvidia H20 processors, especially in government-related projects. According to Bloomberg News, the guidance applies to both state-owned enterprises and private companies, with a particularly strict warning against deploying the chips in work linked to national security.
Guidance Targets Less-Advanced Nvidia Chips
Notices have been sent to a range of companies discouraging the use of the Nvidia H20 semiconductors. While the H20 is considered less advanced than Nvidia’s top-tier processors, the advisory signals Beijing’s caution over technology linked to sensitive operations. Reuters has not independently confirmed the Bloomberg report, and Nvidia has yet to respond to requests for comment made outside normal business hours.
In July, Nvidia stated that its products do not contain “backdoors” that could enable remote access or control. This followed concerns raised by Chinese officials about potential security risks tied to the H20 artificial intelligence chip.
Tensions Over U.S.-China Tech Access
The reported guidance comes as technology competition between the US and China intensifies. On Monday, US President Donald Trump suggested he might allow Nvidia to sell a scaled-down version of its next-generation advanced GPU chip to China. While the move could boost Nvidia’s business, it has sparked criticism from those who fear China could use American AI capabilities to enhance its military strength.
Critics say such sales could give China greater access to advanced computing power, even as Washington imposes restrictions to maintain a technological edge. The ongoing dispute highlights the delicate balance between commercial opportunity and national security in the global tech industry.
with inputs from Reuters
