China urged domestic companies to avoid buying Nvidia’s H20 chips, claiming they are of poor quality and that they may pose security threats.
Beijing’s move comes after the US recently greenlit exports of the chips to China as long as Nvidia pays Washington 15% of the revenue generated. Nvidia has said that the chips — less powerful than those it sells in the US — have no “backdoors” that would allow for remote access.
Some US critics have voiced their own concerns, that even H20 chips could give China’s AI firms a boost as Beijing and Washington vie for dominance in the industry. “You’re selling our national security for corporate profits,” an expert told The New York Times.
