BEIJING/SAN FRANCISCO, Aug 1 — Nvidia said yesterday its products have no "backdoors" that would allow remote access or control after China raised concerns over potential security risks in the firm's H20 artificial intelligence chip.
The Cyberspace Administration of China (CAC), the country's internet regulator, said it was concerned by a US proposal for advanced chips sold abroad to be equipped with tracking and positioning functions. The CAC's move cast uncertainty over the US company's sales prospects in China weeks after a US export ban was reversed.
The regulator said it had summoned Nvidia to a meeting yesterday to explain whether its H20 AI chip had any backdoor security risks, as it was worried that Chinese user data and privacy rights could be affected. A backdoor risk refers to a hidden method of bypassing normal authentication or security controls.
In a statement, an Nvidia spokesperson said, "Cybersecurity is critically important to us. Nvidia does not have 'backdoors' in our chips that would give anyone a remote way to access or control them”.
The White House and both houses of US Congress have proposed the idea of requiring US chip firms to include location verification technology with their chips to prevent them from being diverted to countries where US export laws ban sales. The separate bills and White House recommendation have not become a formal rule, and no technical requirements have been established.
Nvidia has been a focus of US-China relations, and China's move comes shortly after the US this month reversed an April ban on Nvidia selling the H20 chip to China. The company developed the H20 chip for the Chinese market after the US imposed export restrictions on advanced AI chips in late 2023.
"Nvidia chips are now dispensable for China. They can be easily put on the negotiating table," said Tilly Zhang, an analyst with Gavekal Dragonomics.
"China obviously has more courage and domestic substitution capabilities compared to previous years to not rely on overseas technology."
This month, Nvidia CEO Jensen Huang embarked on a public and effusive visit to China, where he sought to demonstrate his commitment to the Chinese market, met with government officials, and praised the country's AI advances.
The CAC statement did not elaborate on what backdoor security risks there could be or say what the Chinese government was considering doing as a result.
