Nvidia just hit a roadblock in China. The chip giant has ordered suppliers to stop production of its H20 AI chip.
The move follows a Beijing crackdown warning domestic firms to avoid these chips. China says the H20 may have security risks and potential backdoors that let the U.S. spy on sensitive data. Instead, they want companies to use homegrown chips.
This shutdown comes only a month after Nvidia got the green light to sell AI chips in China’s market. The situation is tense as Nvidia tries to regain ground there. 
An Nvidia spokesperson told TechCrunch:
We constantly manage our supply chain to address market conditions. Cybersecurity is critically important to us. NVIDIA does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them. The market can use the H20 with confidence.
