Nvidia has firmly denied allegations regarding its H20 artificial intelligence chips having hidden “backdoors” that can enable unauthorized remote access, following security concerns raised by China Cyberspace Administration (CAC).
The company is an American technology company based in Santa Clara, California.
With specialization in developing graphics processing units (GPUs), system on a chips (SoCs), and application programming interfaces (APIs) for data science, the company offers high-performing commuting and automotive applications.
Originally focused on GPUs, Nvidia has broadened their use into other markets, especially Artificial Intelligence (AI), professional visualisation, and supercomputing.
After allegations from CAC, the company’s spokesperson said: “Nvidia does not have 'backdoors' in our chips that would give anyone a remote way to access or control them.”
Nvidia responded in an official statement after reportedly discussions of Chinese regulators regarding potential vulnerabilities in Nvidia’s AI products during closed-door meetings, showcasing Beijing’s broader suspicions about foreign technology, especially highly efficient computing chips used in critical infrastructure.
Nvidia finds itself caught in the escalating tech rivalry between two superpowers of the world. Earlier this year, U.S. export restrictions barred the company from selling its advanced H20 AI chips in China, dealing a significant blow to its revenue.
But during the Biden administration, the bans were reversed due to several negotiations enabling Nvidia to resume shipments.
Despite the reversal of the ban, Nvidia faces ongoing pressure to balance compliance with the policies of both countries ensuring chips exported to both sides neither aid adversaries nor conceal surveillance risks.
Earlier, CEO Jensen Huang has supported U.S. efforts in AI development in a public statement. He further affirms to align the company's vision with Washington’s strategic goals.
Yet, as geopolitical tensions persist, Nvidia’s ability to navigate these challenges will be crucial to sustain its dominance in the global AI chip market. Currently, the company has 80 percent market share for AI training chips.