Nvidia Reportedly Halts Production of H20 AI Chips

Beijing may have complicated Nvidia’s attempts to reenter the Chinese AI market.

As reported by The Information, Nvidia has instructed its component suppliers to halt production of the H20 AI chip.

This production freeze follows reports indicating that Beijing has warned Chinese companies against using these chips due to possible security risks and fears of potential backdoors that could allow U.S. access to sensitive information. The Chinese government is urging firms to consider domestic chip alternatives instead, according to The Information.

This situation arises just a month after Nvidia and other companies received approvals to start selling their AI chips designed for the Chinese market.

An Nvidia spokesperson shared with TechCrunch: “We consistently manage our supply chain in response to market dynamics. Cybersecurity remains a top priority for us. NVIDIA does not incorporate ‘backdoors’ in our chips that would enable remote access or control. The H20 market can place its trust in us.”

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