China Advises Against Using Nvidia
Photo: ChiangYing-ying/AP/TT

China Advises Against Using Nvidia H20 Chips for Government Use

Chinese authorities are urging local companies to avoid Nvidia's H20 chip, especially when it comes to government-related purposes, according to sources with insight into the matter.

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In recent weeks, Chinese authorities have advised a number of companies against using H20. The appeal is also said to apply to the company AMD's MI308 chip, writes the news agency Bloomberg.

Nvidia and AMD have recently received Washington's approval to resume sales of AI chips in the lower price range to China. The condition for the sale is that they give the US government 15 percent of the revenue.

Now, Nvidia and AMD are facing the challenge that their Chinese customers are under pressure from Beijing not to make these purchases.

One of Bloomberg's sources states that some of Beijing's letters to the companies have contained a number of questions, such as why they buy Nvidia H20 chips instead of local alternatives and if they have discovered any security issues in Nvidia's hardware.

The questions coincide with reports in state-owned Chinese media that question the security and reliability of the H20 chip. Chinese regulatory authorities have raised these concerns directly with Nvidia, which has repeatedly denied that its chips have that type of vulnerability.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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