Nvidia is under pressure from the Chinese government after allegations surfaced regarding security concerns linked to its chips. This situation poses a significant challenge for the U.S. tech giant as it attempts to reestablish its foothold in the Chinese market, following recent approval for the export of its H20 chip designed specifically for China. On Thursday, China's cyber regulatory authority convened a meeting with Nvidia to discuss what it termed 'serious security issues' related to the company’s artificial intelligence chips. The regulator cited claims from U.S. AI experts, who alleged that Nvidia’s computing chips could facilitate location tracking and possess the capability to remotely disable technology. In light of these allegations, the Cyberspace Administration of China has demanded that Nvidia clarify the security concerns surrounding the H20 chip. The company is required to provide documentation supporting its position regarding these accusations. This scrutiny comes at a pivotal moment for Nvidia, which is working to rebuild its business in China after the U.S. recently lifted a ban on H20 sales. Nvidia's CEO, Jensen Huang, made a visit to Beijing to engage with local officials and customers, reaffirming the company's dedication to the Chinese market. During this visit, Huang introduced a new graphics processing unit derived from the latest Blackwell series, crafted to comply with U.S. export regulations. However, some experts, like Paul Triolo from DGA-Albright Stonebridge Group, express skepticism regarding the claims of a backdoor being intentionally integrated into Nvidia's technology, noting the lack of substantial evidence in the regulatory announcement.
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