Chinese regulators are questioning tech giants like Alibaba and ByteDance regarding their orders of Nvidia's H20 chips. The Ministry of Industry and Information Technology is requesting explanations as to why these companies are choosing Nvidia's products over domestic alternatives. This scrutiny is leading some firms to consider reducing their orders.
The Chinese government is pushing for the adoption of domestically produced AI chips, including those from Huawei, as alternatives to Nvidia. This initiative aligns with broader efforts to bolster local technology and reduce reliance on foreign semiconductors.
Nvidia has stated that the H20 chip is not intended for military or governmental infrastructure purposes. The company has also denied the existence of any backdoors in its chips that could pose security risks.
