Beijing may have thrown a wrench into Nvidia’s plans on making a comeback in China’s AI market.
Nvidia has instructed its component suppliers to stop production related to its H20 AI chip, according to The Information.
The production halt comes after Beijing reportedly warned Chinese companies against using these chips because of potential security issues and fears of backdoors that would give the U.S. access to sensitive data. China’s government is urging companies to use domestic chips instead, The Information reported.
This comes a month after companies including Nvidia were given the green light to start selling its AI chips designed for China’s market.
An Nvidia spokesperson sent TechCrunch the following statement, “We constantly manage our supply chain to address market conditions. Cybersecurity is critically important to us. NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them. The market can use the H20 with confidence.”
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