On July 31, 2025, China’s Cyberspace Administration (CAC) questioned Nvidia about security concerns related to the H20 AI chips specially developed for the Chinese market. The allegation: the chips might contain backdoors that enable geotracking and remote shutdown. These technologies are reportedly developed in the U.S. for security purposes.
The CAC cited China’s cyber, data, and privacy laws in this investigation. The issue also ties into an unresolved U.S. bill that would require such features in high-performance AI chips for national security reasons. However, it remains unclear if these functions actually exist, and the “experts” behind the claims have not been identified.