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.” During the last Chinese fiscal year it represented approximately 13% of the total income of Nvidia 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 In Xataka | The US gives Huawei a great opportunity: to get its new chip for AI with the Nvidia market in China

Nvidia has to deal with the absolute distrust of several US legislators. His plan in China is in danger

The dispute that Eeuu and China hold It is deeply conditioning the business of many Chinese companies, such as Huawei, SMIC or Hua Hong semiconductor, but is also affecting a very important way To some western companies. The Dutch ASML and the American Nvidia They are in all likelihood that are facing the greatest challenges as a result of the pulse maintained by the American and China administrations. The Chinese market is essential for both, but the sanctions that have approved US governments and the Netherlands They prevent them from selling their customers led by Xi Jinping a good part of their product porpholio. Even so, both companies are doing what is in their hand to defend their economic and commercial interests, and dispense with the Chinese market is not one of its options. In fact, Nvidia has officialized His intention to put a specialized installation in the design of integrated circuits in Shanghai (China). Some legislators consider that Nvidia’s plan is a threat to the US The newspaper The Wall Street Journal It has been made with a letter in which the Republican senator by Indiana Jim Banks and the Democratic Senator for Massachusetts Elizabeth Warren are directed directly to Jensen Huang, the general director of Nvidia. In this text these legislators argue that the installation that Nvidia plans to open in Shanghai represents a direct threat to US national security due to the possibility that China acquires the ability to design avant -garde GPU for artificial intelligence (AI). “No American company should be helping the Chinese Communist Party to close the gap in artificial intelligence,” Nvidia has responded immediately. There is too much at stake to take this light attention call. A spokesman for this company has expressed that its purpose “It is simply to rent a new space that the company’s employees can use after the return to work after the Coronavirus pandemic. The scope of work will not change“However, Nvidia’s official justification does not seem convincing for Warren and Banks. In fact, this last legislator has declared that “no American company should be helping the Chinese communist party to close the gap in artificial intelligence.” It is evident that this is an accusation of full -fledged Nvidia. A very serious accusation that complicates the future plans of the company led by Jensen Huang in China if we are in mind that the manifesto is backed at least by a senator of the Republican party and a senator of the Democratic Party. In addition, this claim comes at a very important moment for Nvidia. The engineers of this company have just concluded The development of a GPU With Blackwell microarchitecture aimed at replacing to the H20 chip whose sale in China has been prohibited by the last sanctions package of the Department of Commerce. The Nvidia Plan is that TSMC starts the manufacture of this GPU expressly intended for the Chinese market in June, but at the current situation it would not be surprising at all that the Department of Commerce prevents its delivery to Chinese clients in Nvidia. We will see what happens finally, but the panorama does not paint anything well for the company led by Jensen Huang. Image | Nvidia More information | The Wall Street Journal In Xataka | The US gives Huawei a great opportunity: to get its new chip for AI with the Nvidia market in China

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