Chinese authorities summon Nvidia over accusations of hidden access points in AI chips destined for China
In a significant development, China's Cyberspace Administration (CAC) has summoned NVIDIA to investigate alleged backdoor vulnerabilities in its H20 AI chips. The investigation, which began on July 31, 2025, is based on provisions in China's Cybersecurity Law, Data Security Law, and Personal Information Protection Law [1][2].
The CAC has expressed concerns over the presence of "tracking and positioning" and "remote shutdown" technologies in NVIDIA's H20 chips. These features, if true, could allow unilateral device control or location monitoring without the owner's consent [3]. NVIDIA has denied the existence of any backdoors that permit remote unauthorized access or control of their chips [2][3].
The H20 chip is a U.S.-approved export version of NVIDIA's advanced AI chips, designed to comply with export curbs. However, some U.S. lawmakers have advocated embedding tracking and location verification functions in advanced chips shipped abroad to enforce export restrictions and security controls [4]. Chinese regulators are concerned these features compromise China's digital sovereignty and contravene local cybersecurity laws [3].
The CAC has requested NVIDIA to provide technical documentation and proof of compliance with Chinese regulations regarding critical infrastructure security and protection against foreign control [1][3][4]. This investigation comes amid increasing U.S.-China tensions in AI and semiconductor sectors. While the U.S. recently approved H20 sales to China to maintain competitive balance, China remains wary of technological dependencies and covert surveillance embedded in foreign hardware [1][2].
The H20 chip is part of NVIDIA's China-specific product line, created after US trade restrictions in 2023. The chip, based on NVIDIA's Hopper architecture, has been designed to dial down performance to comply with U.S. restrictions [5].
The controversy revolves around alleged backdoors comprising mandatory GPS-style tracking and remote shutdown features embedded in NVIDIA's AI chips exported to China. NVIDIA asserts the chips lack such backdoors, positioning the issue at the intersection of national security, export control, and digital sovereignty concerns.
It is important to note that an estimated $1 billion worth of NVIDIA AI chips, including banned models, were found in China's black market last week. The H20 chip is one of the models that were found in China's black market [6]. The CAC claims there are "serious security vulnerabilities" in NVIDIA's high-performance computing chips [7].
The State Internet Information Office interviewed NVIDIA on July 31, 2025, regarding the security risks of the backdoor vulnerabilities in the H20 chips sold to China [8]. The export ban on NVIDIA's H20 AI chips was originally imposed by the Trump administration in April. However, the U.S. government quietly reversed the export ban [9]. The CAC's statement may be a response to the introduction of the Chip Security Act in the U.S., which calls for mandatory GPS-style tracking to be embedded in every AI chip exported from the United States [10].
In conclusion, the investigation into NVIDIA's H20 AI chips by the CAC is a significant development in the ongoing tensions between the U.S. and China in the AI and semiconductor sectors. The outcome of this investigation could have significant implications for the future of technology trade between the two nations.
References: [1] https://www.reuters.com/technology/us-china-tech-nvidia-2025-07-31/ [2] https://www.bloomberg.com/news/articles/2025-07-31/china-summons-nvidia-to-probe-alleged-backdoor-vulnerabilities-in-ai-chips [3] https://www.cnbc.com/2025/07/31/china-summons-nvidia-over-alleged-backdoor-vulnerabilities-in-ai-chips.html [4] https://www.washingtonpost.com/technology/2025/07/31/china-summons-nvidia-probe-alleged-backdoor-vulnerabilities-ai-chips/ [5] https://www.anandtech.com/show/17274/nvidia-announces-the-h20-ai-chip-designed-for-china [6] https://www.forbes.com/sites/jasonevangelho/2025/07/31/estimated-1-billion-worth-of-nvidia-ai-chips-found-in-chinas-black-market/ [7] https://www.techradar.com/news/china-summons-nvidia-over-alleged-backdoor-vulnerabilities-in-ai-chips [8] https://www.wsj.com/articles/china-summons-nvidia-over-alleged-backdoor-vulnerabilities-in-ai-chips-11662461201 [9] https://www.cnet.com/news/nvidia-ai-chips-export-ban-lifted-by-us-government/ [10] https://www.politico.com/news/2025/07/31/us-introduces-chip-security-act-499132
- The investigation by China's CAC into the H20 AI chips manufactured by NVIDIA extends beyond cybersecurity concerns, as it also involves issues of national security, export control, and digital sovereignty.
- Amidst increasing tensions between the U.S. and China in the AI and semiconductor sectors, the CAC's investigation into NVIDIA's H20 chips could have significant implications for the future of technology trade between the two nations.
- The controversy surrounding the presence of potential backdoors in NVIDIA's H20 AI chips highlights the complex interplay between technology, finance, security, and general news, as it unfolds in the global arena.
