Nvidia Faces China Scrutiny Over AI Chip Security Risks

China’s top internet watchdog has summoned Nvidia to address potential security concerns in its H20 artificial intelligence chip, according to Reuters. The move casts doubt on the company’s sales outlook in China just weeks after a U.S. export ban was reversed. The Cyberspace Administration of China cited worries that a U.S. proposal requiring tracking features in exported chips could compromise user privacy and data security. The H20 chip was developed specifically for China after the U.S. restricted sales of advanced AI chips last year. Analysts say Beijing’s move may be more symbolic than punitive, noting that China still relies on Nvidia chips for domestic AI research.