China urges local firms not to use Nvidia's H20 chips, Bloomberg News reports
CHINA, AUG 12 – China cites security risks and promotes domestic AI chips as local firms are advised to avoid Nvidia H20 for government use amid rising U.S.-China tech tensions.
- On Tuesday, Bloomberg reported that China issued official notices urging local firms to avoid Nvidia H20 chips for government or security work.
- Last week, the U.S. government confirmed a deal with Nvidia and AMD requiring Washington to receive 15% of sales, amid China raising security concerns about Nvidia's H20 chips.
- Earlier on Sunday, Yuyuan Tantian labeled H20 chips environmentally unfriendly and possibly unsafe, while Nvidia affirmed 'H20 is not a military product or for government infrastructure'.
- On Tuesday, shares in SMIC rose 5% as investors anticipate higher demand for domestically-made chips, leading some companies to consider reducing H20 orders.
- The move underscores growing technology tensions between the U.S. and China, as both push to secure their positions in the global AI race, amid rising competition from Huawei.
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Chinese authorities have warned domestic companies against the use of Nvidia's H20 chip, which would allow the US government to capture sensitive information.
The Chinese authorities have sent companies to avoid the use of Nvidia H20 chips, even if the US producer has recently received approval to recover the books of this less advanced model, reports Bloomberg, reading sources close to the situation.
Chinese authorities have urged local companies in recent weeks to avoid using Nvidia’s H20 processors, especially in projects linked to government agencies or national security, Bloomberg said.
China warns firms against using Nvidia chips, citing security concerns
It looks like China is making things difficult for chipmaker Nvidia. Chinese authorities have urged local companies to avoid using Nvidia’s H20 chips, particularly for government-related purposes, Nvidia said in a statement on Tuesday that the H20 chip was “not a military product or for government infrastructure.” “China has ample supply of domestic chips to meet its needs. It won’t and never has relied on American chips for government operation…
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