Nvidia (NVDA, Financials) is flatly denying Chinese claims that its new H20 AI chip could be used for hidden surveillance. The Cyberspace Administration of China pressed the company for answers after reports of potential backdoor features.
The H20 was built specifically for the Chinese market after the US clamped down on high-end chip exports. It’s a toned?down version of the H100 and, Nvidia says, has no tracking hardware.
Even with the political drama, demand is strong. Reuters says China recently ordered about 300,000 H20 chips from TSMC. Analysts think Beijing will keep buying while rushing to build its own alternatives from Huawei and others.
For now, China’s regulator hasn’t announced any follow?up action. The chips will likely keep flowing, just under a brighter spotlight.
This article first appeared on GuruFocus.