On July 31, the agency summoned Nvidia executives over alleged “serious security issues”. In a statement, the CAC claimed that US AI experts had revealed Nvidia’s chips have location tracking and can be shut down remotely — a claim strongly disputed by Nvidia.

Nvidia is developing a new Blackwell-based AI chip for China, expected to outperform the H20 amid export curbs, security concerns, and intensifying U.S.-China tech tensions.

Nvidia (NVDA) is working on a new artificial intelligence chip for China based on its latest Blackwell architecture, which will be more powerful than the current H20 model it is permitted to sell, Reuters reported.