China Urges Firms to Avoid Nvidia H20 Chips, Bloomberg Reports
Chinese authorities have advised domestic companies to avoid using Nvidia’s (NASDAQ: NVDA) H20 processors, especially for government-related projects, Bloomberg News reported on Tuesday. The guidance comes from people familiar with the matter.
Strong Restrictions on Government Use
Notices were sent to various firms discouraging the use of these less-advanced semiconductors. The instructions take a firm stance against deploying Nvidia’s H20 chips in any work connected to government or national security, whether by state-owned enterprises or private companies.
Reuters has not yet independently confirmed the report. Nvidia did not respond to requests for comment outside regular business hours.
Security Concerns Over Nvidia Chips
In July, Nvidia stated that its products contain no “backdoors” for remote access or control. This statement followed China’s concerns about possible security risks in the H20 artificial intelligence chip.
On Monday, U.S. President Donald Trump suggested he might permit Nvidia to sell a scaled-down version of its next-generation GPU chip, Blackwell, in China. This comes despite concerns in Washington that U.S. AI technology could bolster China’s military capabilities.
H20 Chips and U.S.-China Tech Tensions
Currently, the most advanced chip Nvidia can sell in China is the H20, built on its older Hopper architecture. The Trump administration approved H20 AI exports to China last month.
Last week, the administration also confirmed a historic agreement with Nvidia and AMD (NASDAQ: AMD) that will give the U.S. government 15% of revenue from certain advanced chip sales in China.
Impact on AMD AI Accelerators
According to Bloomberg, China’s latest guidance also applies to AI accelerators from AMD. However, it remains unclear whether Chinese notices specifically mentioned AMD’s MI308 chip. AMD did not respond to requests for comment outside normal business hours.
