Nvidia rejects allegations of chip backdoors following China’s security concerns

Nvidia has denied allegations that its H20 artificial intelligence chips contain hidden “backdoors” that could enable remote, unauthorized access or control. The statement follows concerns China’s Cyberspace Administration (CAC) raised over possible security vulnerabilities in the company’s AI products.

“Cybersecurity is critically important to us,” a Nvidia spokesperson told FOX Business in an email. “Nvidia does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.”

Backdoors are undiscovered capabilities or vulnerabilities in hardware or software that can be used to gain unauthorized access. Beijing fears such mechanisms could lurk in foreign technology, particularly high-performance computing chips central to national infrastructure.

US plan to track foreign visitors alarms other nations

China’s worries deepened last month when news reports said the United States considered adding location-tracking or verification capabilities to semiconductors sold to other countries. It has been floated both in the White House and by lawmakers to boost national security and keep an eye on how chips are used beyond its borders.

No legislation has been passed, but the idea has been thrown by foreign governments, particularly China, which views such things as potential surveillance tools.

Chinese officials are concerned these capabilities would enable US agencies to listen in on, or even sabotage, Chinese networks. The concerns have been focused on privacy and national security, since businesses, military applications, universities, and AI research labs throughout China employ Nvidia’s chips.

China has a history of testing technology brought in from the United States on security grounds. In 2023, for example, the government reportedly ordered critical infrastructure operators not to buy American memory chips from US-based Micron for national security reasons.

Nvidia weighs goals against geopolitics

The race between the United States and China to create the world’s first global computing network has intensified. And Nvidia is a big loser. Due to rules imposed by the US Department of Commerce, the company’s flagship H20 AI chip had been prohibited from being sold in China earlier this year.

The restrictions were much broader as part of a continuing effort to restrict China’s access to advanced technologies that the administration considers necessary for its military and surveillance systems.

The limitations were a major blow to Nvidia’s earnings and cost it billions of dollars in potential sales. However, that changed suddenly earlier this month, when the US lifted a year-old ban after a private meeting between President Donald Trump and Nvidia CEO Jensen Huang.

The reversal was part of a broader mineral deal in which China agreed to ease its export restrictions on rare earth elements — materials crucial to semiconductor and electric vehicle manufacturing.

That settlement permitted Nvidia to ship the H20 chip to Chinese buyers again, a development that investors and industry participants hailed. China is a major market for Nvidia, and demand for AI chips has soared as the country has grown quickly in tech.

Despite the policy shift, the company continues under pressure to satisfy compliance requirements from both governments. Nvidia has to convince American officials and Chinese regulators that its chips won’t serve adversarial nations and assure China that the same chips aren’t Trojan horses for surveillance.

Beijing pressures Nvidia as CEO backs US AI ambitions

A few hours ago, China’s state-run People’s Daily called on Nvidia to provide “convincing security proofs” to address growing concerns over potential risks in its chips and rebuild trust in the Chinese market.

In a strongly worded commentary titled “Nvidia, how can I trust you?”, the outlet emphasized that foreign companies must prioritize cybersecurity and comply with Chinese laws. Nvidia responded, denying any backdoors and affirming its commitment to cybersecurity.

Nvidia says its leadership is aligned with the US ambitions to dominate the AI race. In an interview last week, the company’s CEO lauded the Trump administration’s AI roadmap, channeling a report that could accelerate technological progress and consolidate America’s tech leadership on the global stage.