Chinese authorities have summoned a number of the country's largest technology companies, including Tencent, ByteDance, Alibaba and Baidu, to investigate why they purchased and used Nvidia H2O artificial intelligence chips for the Chinese market. This came amid security concerns that the US company may have obtained sensitive data from its Chinese customers and shared it with the US government.
The meeting, which was attended by the Cyberspace Administration of China and other security agencies, focused on the authorities questioning why companies prefer Nvidia chips when there are local alternatives that provide similar performance. Official notices were also issued urging companies to avoid using H2O chips in government or national security-related projects.
Authorities have reportedly asked ByteDance, Alibaba, and Tencent to suspend the purchase of these chipsets altogether, especially after the Trump administration recently lifted export restrictions on the chipsets. Chinese pro-government media heavily criticized the H2O chips, arguing that they are weaker than international versions and rely on outdated technologies, which could affect Nvidia's estimated $17 billion in sales in China.
On the other hand, Chinese companies are stepping up their efforts to develop cheaper and safer local AI chips, most notably the Huawei chips unveiled at the World AI Conference in Shanghai, as part of a strategy to counter dependence on US technology.
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🔥 "China corners tech giants... and Nvidia is at the center of the storm!"
