Chinese authorities have advised Chinese companies to refrain from using Nvidia H20 chips, especially in the context of government and national security procurement, Bloomberg reported on Tuesday, citing people familiar with the matter.
Agency sources revealed that some of the letters sent by the authorities to the companies contained questions regarding the justification for purchasing Nvidia H20 chips instead of local products.
These reports are also accompanied by state media publications questioning the security and reliability of these chips, suggesting that Nvidia has the ability to locate and remotely disable its products, a claim the company denies.
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Currently, the H20 is the most advanced chip Nvidia can sell to China. However, it is based on an older architecture. US President Donald Trump's administration authorized its export to China last month.
According to Bloomberg, similar pressure may apply to AMD's AI chips. Both companies received Washington's approval to export “obsolete” AI chips in exchange for a 15% contribution to the U.S. treasury, as confirmed by Trump on Monday. This decision comes despite concerns from some U.S. experts about China using American AI technologies to strengthen its military.
Although the current restrictions primarily apply to sensitive applications, Bloomberg reports that they could be extended to other sectors. Beijing's previous actions in restricting access to foreign technologies, such as in the cases of Tesla vehicles and iPhones, demonstrate the Chinese government's strategic approach to national security and the development of the domestic semiconductor industry.
From Beijing Krzysztof Pawliszak (PAP)
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