China Probes Nvidia Over Alleged H20 AI Chip’s “Backdoor” Security Risks  

China’s Cyberspace Administration (CAC) summoned Nvidia officials to address alleged “backdoor” security vulnerabilities with the H20 AI chip, just weeks after Nvidia CEO Jensen Huang’s diplomatic visit to Beijing, and days after US and Chinese officials met in Stockholm to extend their tariff truce. 

Nvidia was asked “to clarify and submit relevant supporting documentation regarding security risks, including potential vulnerabilities and backdoors, associated with its H20 computing chips sold to China,” according to a statement from CAC. 

China’s top internet watchdog claimed Nvidia’s AI chips pose major security threats due to security vulnerabilities…

“US lawmakers have previously called for advanced chips exported from the US to be equipped with location-tracking features,” the regulator pointed out. 

“The location-tracking and remote shutdown capabilities on Nvidia computing chips are ready, according to US AI experts,” CAC said. 

CAC’s concerns follow a legislative push in Washington, where Republican Senator Tom Cotton and a bipartisan group of eight Representatives recently introduced the U.S. Chip Security Act (H.R. 3447). This bill includes the requirement for companies like Nvidia to embed security mechanisms into advanced chips, such as location verification or tracking mechanisms. 

Nvidia reps were asked to provide technical documents about the H20 AI chip to ensure there are no “backdoors.” Huang has previously denied any security vulnerabilities with his chips. 

Earlier this month, Huang convinced the Trump administration to lift restrictions on AI chip sales to China. This is a remarkable reversal from the previously stated stance that limited US-China AI chip shipments to slow Beijing’s military progress. 

Commerce Secretary Howard Lutnick had recently said the resumption of sales of the H20 was linked to a rare earths deal with China. He framed it as a concession to Beijing. 

“The fourth one down, we want to keep China using it,” Lutnick said weeks ago, adding, “We want to keep having the Chinese use the American technology stack, because they still rely upon it.”

Forrester’s Principal Analyst Charlie Dai noted that “CAC’s scrutiny over H20 security risks could further erode Nvidia’s Chinese market share amid rising domestic competition, and immediate H20 sales resumption may face delays due to regulatory uncertainty.”

“It also aligns with China’s broader push to accelerate domestic semiconductor alternatives for technological self-reliance amid US export controls. In addition, the timing amplifies China’s leverage in ongoing US trade talks,” Dai said.