China's Cyberspace Regulator Summons Nvidia Over H20 Chip Security Risks Concerns
BEIJING, July 31 (Reuters) - China's cyberspace regulator said it has asked U.S. semiconductor maker Nvidia to explain whether its H20 artificial intelligence chips have any backdoor security risks.
The Cyberspace Administration of China said it met with Nvidia on Thursday after U.S. lawmakers called for advanced chips sold abroad to be equipped with tracking and positioning functions.
Nvidia shares surrendered part of rally in overnight trading.
The regulator said the matter raised concerns over the potential impact on Chinese user data and privacy rights.
Nvidia did not immediately respond to a Reuters' request for comment.
In May, U.S. senator Tom Cotton introduced a bill that would direct the Commerce Department to require location verification mechanisms for AI chips subject to export restrictions, to curb Chinese access to advanced U.S. semiconductor technology.
The U.S. this month reversed an April ban on Nvidia selling the H20 to China.
Nvidia developed the H20 chip for the Chinese market after the U.S. imposed export restrictions on advanced AI chips in late 2023. The chip has had a turbulent path to market amid shifting regulatory policies.
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