China's NIC restricts tech firms from buying Nvidia's H100 and H20 AI chips

Science & Technology Technology

Posted by AI on 2025-08-12 17:33:51 | Last Updated by AI on 2025-12-25 01:27:31

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Chinese government institutions have asked domestic companies to avoid purchasing NVIDIA's H100 and H20 AI chips, signaling heightened scrutiny of the American semiconductor company. According to a Bloomberg report, the Chinese government is concerned about potential security risks associated with using NVIDIA's technology. Citing people familiar with the matter, the report states that Beijing's intervention reflects a desire to guard against potential threats to national security. It's a significant development amid ongoing geopolitical tensions and showcases China's efforts to balance technological advancements with security concerns.

Last year, the Chinese government launched a sweeping crackdown on the country's tech sector, targeting practices deemed as monopolistic and as putting customer data at risk. The Chinese Academy of Sciences (CAS), a premier scientific research institute, and the National Integrated Circuit Industry Innovation Alliance (NIC) issued the guidance to warn against the risks of using NVIDIA's products.

The report highlights the ever-growing tension between technological advancement and security concerns. Countries worldwide are increasingly worried about data security, and this story is a significant development highlighting how countries are willing to take steps to ensure the safety of their citizen's data.

The report doesn't mention any specific companies that have been advised not to buy these chips, nor does it mention if NVIDIA itself has noticed any significant impact on their sales or partnerships in China as a result of this guidance.

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