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NVIDIA’s position in the global AI hardware market may be under scrutiny soon after news of China’s cyberspace administration investigations.
The Chinese regulator has called on the US chipmaker to explain the potential “backdoor” risks in its H20 chips, which, especially for China, developed for China, especially after interrupting the advance sales of AI processors at high -end AI processors.
This concern is from US legislative measures that proposes a location verification system on the chips for export, fearing Chinese authorities can compromise on data sovereignty and consumer confidentiality.
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Growing doubts
Although NVIDIA has strongly denied the existence of any such risks, the Chinese government’s decision to question the issue has introduced a new layer of uncertainty in complex relations with its second largest market.
The regulator has not detailed any specific steps he is planning, but the call to clarify the potential security flaws shows that the company’s access to Chinese companies may face further friction.
The official status of NVIDIA is permanent: its chips have no embedded features that can allow remote access or control.
In her own words, “CyberScivation is critical to us,” and Nvidia hardware has no “backdoor”.
However, this assurance may not be enough to change the growing doubts, especially when Chinese policies are removed around US and technology exports.
Meanwhile, Chinese analysts have suggested that the move could be a political gesture, fears of mirrors concerns that what the United States has raised about Chinese tech in recent years.
What is noteworthy is that even in the midst of increasing tensions, NVIDIA continues to demand strong H20 chip inside China.
The company has allegedly ordered 300,000 units from TSMC, reflecting the ongoing consistency of Chinese developers, research institutes and universities, all of which relied heavily on high -performance AI chips to advance local developments.
Even military and state -backed projects are known for using NVIDIA technology.
Despite the public hopes and high -level visits of NVIDIA CEO Jensen Huang in China, the broader regulatory environment is rapidly unexpected.
The regulator is also considering the acquisition of Israeli chip designer, melanox technologies, and has been claimed that NVIDIA has violated certain conditions in the conditional approval of the agreement.
Supply chain uncertainty, potential imports of imports, or licensing rules can eventually affect the availability and cost of hardware.
Since the two countries deepen their technology depth, NVIDIA’s global leadership in AI hardware can no longer be deployed.
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