Beijing may have thrown a wrench into Nvidia’s plan to make a comeback in the Chinese AI market.
Nvidia has instructed component suppliers to halt production related to the H20 AI chip, according to the information.
The production halt reportedly warned Chinese companies against Beijing’s use of these chips due to potential security issues and the background horror that would allow the US to access sensitive data. The Chinese government is urging businesses to use domestic chips instead, the information reports.
This is one month after companies including Nvidia were given green light to begin selling AI chips designed for the Chinese market.
An Nvidia spokesperson sent the following statement to TechCrunch: “We always manage our supply chain and deal with market conditions. Cybersecurity is extremely important to us. Nvidia doesn’t have a ‘backdoor’ in the chip that provides anyone with a way to access or control remotely. The market can use H20 with confidence. ”
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