Nvidia urged to provide security guarantees amid Chinese concerns: Report

US chip giant Nvidia is under fresh scrutiny in China after the country’s top internet regulator raised concerns about potential security risks in the company’s H20 artificial intelligence chip. In a commentary published Friday on the social media account of People’s Daily—China’s state-run media outlet—Nvidia was urged to produce "convincing security proofs" to ease public anxiety and regain market trust.

Titled "Nvidia, how can I trust you?", the piece stressed that foreign companies must comply with Chinese laws and consider security a basic prerequisite for operating in the country. The commentary came just a day after the Cyberspace Administration of China (CAC) summoned Nvidia for a meeting to address whether the H20 chip includes any hidden backdoors, covert access points that could be used to bypass normal security protocols, Reuters reported.

The Cyberspace Administration of China has raised alarms over the security of Nvidia's H20 artificial intelligence chip. Concerns were amplified by a US proposal to incorporate tracking and positioning functions within chips sold internationally. The Chinese regulator has summoned Nvidia for discussions on potential backdoor security risks, which might affect the data privacy of Chinese users.

Nvidia's response

Nvidia has responded to these concerns, asserting that its chips "do not contain any 'backdoors' that would allow others to remotely access or control them." This statement is part of Nvidia's broader effort to maintain transparency and trust with its international partners, particularly in the wake of heightened scrutiny from Chinese authorities.

A commentary in China's state-run media, People's Daily, insists that Nvidia must produce "convincing security proofs" to dispel concerns about security risks in its chips and to regain trust in the market. The commentary emphasizes that "foreign companies must comply with Chinese laws and take security to be a basic prerequisite," signaling the importance of adhering to local regulations.

This heightened scrutiny from China follows the recent reversal of a US export ban on the H20 AI chip, which had previously limited Nvidia's sales opportunities in China. The lifting of the ban was part of broader trade discussions involving critical resources, underlining the complex nature of international trade relations.

The H20 chip is a highly sought-after product across several sectors in China, including technology firms, the military, universities, and AI research entities. Despite concerns, Nvidia reassures its commitment to cybersecurity as a core operational principle. A spokesperson for Nvidia told FOX News, "Cybersecurity is critically important to us," reinforcing the company's dedication to data protection.

Nvidia's stance remains firm as it addresses the issue of data security raised by the Chinese regulator. "Nvidia does not have 'backdoors' in our chips that would give anyone a remote way to access or control them," a spokesperson confirmed, reflecting the company's ongoing strategy to reassure global markets of its commitment to privacy.

China has previously cracked down on other US tech firms over security issues. In 2023, Beijing barred key infrastructure operators from purchasing products from U.S. memory chipmaker Micron, citing similar national security risks.

China's demand for security proofs highlights its continued apprehension regarding US tech companies, a concern that has previously led to the prohibition of purchases from other American firms. This scrutiny reflects broader geopolitical tensions affecting technology trade between the two nations, underscoring the complex dynamic of technological rivalry.

As Nvidia navigates these challenges, the company focuses on regaining confidence in the Chinese market through transparency and compliance with local regulations. People's Daily's commentary on the necessity for security compliance underscores the critical nature of these efforts for Nvidia's sustained success in China and its role in fostering a cooperative international business climate.

In addition to addressing these security concerns, Nvidia is also exploring ways to enhance its collaboration with Chinese partners. This includes potential joint ventures and research initiatives aimed at fostering innovation while ensuring adherence to local security standards.