According to The Information, this decision came after a warning from the Chinese government. China has urged local companies not to use Nvidia’s H20 chips. Chinese officials believe that using foreign chips could pose a risk to the country’s data security, and that using domestically produced products is safer.
This decision comes just one month after Nvidia was given the green light to resume operations in the Chinese market. The Chinese authorities continue to encourage local companies to use domestically made chips instead of foreign ones.
An Nvidia spokesperson denied these claims, stating that there are no hidden mechanisms in the company’s products that would allow remote access or control, and that customers can use the H20 chips without any issues. The spokesperson also noted that the production halt is related to market conditions.
