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Chinese regulators have reportedly ordered large tech companies to suspend purchases of Nvidia’s H20 GPUs, according to The Information, in what would be the latest chapter in the artificial intelligence chip saga between the U.S. and China.
The Cyberspace Administration of China ordered TikTok owner ByteDance (BDNCE), Alibaba Group (BABA) and Tencent Holdings (OTCPK:TCEHY)(OTCPK:TCTZF) to suspend orders of H20 chips, the report said, citing people familiar with the matter. The regulator said the suspension is needed as the government investigates any potential security risks stemming from the GPUs. The move is also intended to help persuade Chinese companies to purchase chips from local manufacturers, such as Huawei.
The suspension comes as the U.S. Department of Commerce recently granted Nvidia and AMD (AMD) permission to resume sales of its H20 and MI308 chips, respectively, into China. On Monday, U.S. President Donald Trump confirmed Nvidia and AMD will share 15% of revenue from the sales of these chips to China.
Nvidia has denied any security risks related to its H20 processors or any other of its hardware.
“Cybersecurity is critically important to us,” a spokesperson said. “NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.”