Nvidia has reportedly instructed suppliers to stop production of its H20 AI chips, after Beijing warned Chinese companies against using the U.S.-made processors over security concerns.
According to The Information, Chinese authorities told local firms that the chips could contain backdoors that might give the U.S. access to sensitive data, urging them instead to adopt domestic alternatives.
Related: Nvidia Reportedly Readies New AI Chip for China
The move comes just weeks after Nvidia and other chipmakers were cleared to sell certain AI processors tailored for the Chinese market. The H20 was a key part of Nvidia’s strategy to regain a foothold in China, which represents one of the world’s largest AI markets.
Responding to the report, an Nvidia spokesperson told TechCrunch:
“We constantly manage our supply chain to address market conditions. 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 market can use the H20 with confidence.”
The production halt underscores the growing U.S.-China tech tensions, which continue to complicate the global semiconductor industry.
