NVIDIA’s H20 AI chips face a rocky path into China as state media ramps up concerns over potential security risks and hidden backdoors. 
Despite recent U.S. approval for exports, Chinese regulators have launched investigations into the chips, citing fears that they could be used for surveillance or contain a so-called ‘kill switch’ capable of disabling systems remotely.
Reuters reports that China’s state broadcaster CCTV openly criticized the H20, labeling it unsafe for domestic AI markets. Their statement suggested that products lacking environmental friendliness, technological advancement, and security should be avoided altogether. This marks yet another challenge for NVIDIA, following earlier warnings from the nation’s cyberspace watchdog about possible embedded monitoring features.
NVIDIA responded quickly via a blog post, insisting that no such mechanisms are built into its hardware and that the H20 chips are free from any backdoor functionalities. However, skepticism remains high within Chinese media circles, fueled by the fact that the U.S. government’s AI policy still leaves room for potential hardware controls.
Analysts note that China represents a critical market for NVIDIA, especially as the company holds significant H20 inventory that needs buyers. While the firm’s PR efforts work overtime to ease concerns, trust is proving difficult to rebuild amid ongoing geopolitical tensions and persistent questions over security compliance.