China Probes Nvidia H20 Chips for Built-In Surveillance Features

China’s Cyberspace Administration summoned Nvidia representatives to Beijing on July 31 to investigate security risks in the company’s H20 artificial intelligence chips sold in the Chinese market.

The regulator questioned whether H20 chips contain built-in tracking, location verification, or remote-shutdown capabilities. Officials demanded that Nvidia submit technical documentation explaining these features, according to Reuters reports.

The Cyberspace Administration of China met with Nvidia staff following reports from unnamed U.S. AI experts suggesting H20 chips may include “back-door” functions that allow external monitoring or device shutdown. The agency stated the meeting aimed “to safeguard the network and data security of Chinese users” and required Nvidia to provide evidence addressing the alleged risks.

Nvidia developed the H20 GPU specifically for China after the U.S. imposed stricter export controls on advanced chips in late 2023. Washington lifted its ban on H20 exports in July, prompting Nvidia to order approximately 300,000 units from Taiwan Semiconductor Manufacturing Co. to meet Chinese demand.

China accounts for roughly 13% of Nvidia’s revenue. The company recently achieved a $4 trillion market valuation, making China a crucial market for its business.

Separately, Nvidia faces an antitrust investigation in China regarding its 2020 acquisition of Mellanox Technologies and alleged anti-competitive practices. Chinese technology companies widely use H20 chips for data-center and cloud applications.

Beijing promotes domestic AI hardware companies, including Huawei and Cambricon, creating additional pressure on foreign suppliers to demonstrate their products pose no security threats.

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 stated.

U.S. lawmakers introduced bipartisan legislation requiring AI-chip manufacturers to embed location-verification technology, preventing smuggling of export-controlled processors into China. Nvidia designed the H20 with slightly reduced performance compared to flagship chips to comply with U.S. regulations, but concerns over embedded security functions renewed tensions in U.S.-China technology trade.