Now you have to deal with the US pressure and China’s distrust

Nvidia is dealing with one of the biggest challenges in its recent history. How do we tell you yesterdaythe administration of the cyberspace of China, usually known as CAC for its English denomination (Cyberspace Administration of China), he has decided Thoroughly investigate the H20 GPU. This institution is the main Internet regulatory body in China and is responsible for the censorship and control of the contents published in the Network, the supervision of technology companies and compliance with the Data Security Law and the Personal Information Protection Law.

Currently the chip for artificial intelligence (AI) H20 It is the best option that NVIDIA has to maintain its leadership in the Chinese market. The reception that Chinese companies initially gave to this GPU was very good despite the fact that the capacities of this chip are clearly lower than those of the other proposals for this company. In fact, the US Department of Commerce allowed its sale in China because this integrated circuit fulfilled the restrictions that had imposed.

The problem that Nvidia faces now is that The CAC has decided to investigate it Because he suspects that the H20 chip could incorporate a rear door of difficult location by Chinese experts. If so, the possibility of China to use this GPU could be possible. At the moment the CAC has limited himself to questioning those responsible for NVIDIA in China and ask them to demonstrate that the H20 Chip does not represent a threat to the interests and security of the country led by Xi Jinping.

Nvidia has already responded to the Chinese government

As expected, Nvidia has immediately responded to the Chinese authorities and is collaborating to dissipate as soon as possible the doubts that loom about the H20 chip. According to SCMPthose responsible for the company in China have assured CAC researchers that the GPUs for Ia that they develop do not incorporate any “rear door” implemented to facilitate espionage by the US government. “Cybersecurity is of vital importance for us”, has declared A NVIDIA executive. “We have no rear doors in our chips that can give someone remote access or the ability to control them.”

For Nvidia this conflict is very important. His presence in the Chinese market is at stake. During the last fiscal year, which expired on January 26, 2025, China represented approximately 13% of total income of the company led by Jensen Huang with a figure of some 17,000 million dollars. Losing this source of income would lead to a serious problem for this company, hence the distrust of the Chinese government cannot be allowed to extend. However, this is not the only challenge that Nvidia faces.

During the last two years the commercial war between China and the US has intensified, which has forced Nvidia to deal with the changing regulation of the US Department of Commerce. This organism establishes what conditions the chips must meet for the produced by US companies so that they can be sold in China. These requirements are increasingly restrictive, so Nvidia has been forced to redesign its GPU for the purpose of expressly adapting them to the Chinese market. Their engineers have been working on 2024 A new GPU with Blackwell microarchitecture The latest generation that is destined to occupy in China the place of the H20 chip, but right now its future is uncertain.

Image | Nvidia

More information | SCMP

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