China summons Nvidia over its AI chip H20's 'back-door security risks'

China's cyberspace regulator has asked Nvidia to explain security risks linked to its H20 AI chip, including location tracking and remote shutdown features

Nvidia
Nvidia's H20 chips were recently reintroduced to the Chinese market after former US President Donald Trump lifted restrictions as part of a deal with China.(Photo: Reuters)
Rahul Goreja New Delhi
2 min read Last Updated : Jul 31 2025 | 3:23 PM IST
Chinese authorities have summoned Nvidia representatives over suspected security vulnerabilities in the company’s H20 artificial intelligence (AI) chips, the Cyberspace Administration of China (CAC) said in a statement released on Thursday.
 

Concerns over tracking and shutdown functions 

The CAC said it had called in Nvidia to explain risks linked to the H20 chips’ location tracking and remote shutdown capabilities, according to a report by the South China Morning Post (SCMP).
 
The regulator cited “serious security issues” highlighted in various reports and noted that some United States lawmakers had reportedly demanded inclusion of tracking features in AI chips destined for export. 
 
“To safeguard the network and data security of Chinese users … the Cyberspace Administration of China summoned Nvidia on July 31, demanding the company explain the back-door security risks associated with its H20 chips sold to China and submit supporting evidence,” the CAC statement said, as quoted by SCMP.
 
Describing the development as part of a fact-finding process, the CAC directed the US-based chipmaker to provide documentation supporting its explanation.

Tensions follow recent trade engagement

The investigation comes just days after a US-China trade meeting held in Stockholm.
 

Recent resumption of H20 chip exports 

The H20 chips were recently reintroduced to the Chinese market after former US President Donald Trump lifted restrictions as part of a deal with China.
 
While announcing the export resumption, US Commerce Secretary Howard Lutnick described the H20 chip as Nvidia's “fourth best” chip, stating, “We don’t sell them our best stuff, not our second best stuff, not even our third best.”
 
Nvidia has not yet made a public statement in response to the CAC summons.
 
The development also follows Nvidia founder and CEO Jensen Huang’s visit to China, where he reportedly said he was “very happy” to have received US approval for resuming H20 chip exports, SCMP reported.
 
According to Reuters, Nvidia has also placed orders for 300,000 H20 chipsets with Taiwan Semiconductor Manufacturing Company, the world’s leading contract chipmaker.
 
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Artificial intelligenceNvidiaChinaUS ChinaBS Web Reports

First Published: Jul 31 2025 | 3:01 PM IST

Next Story