CNBC AI News, August 2nd – A commentary published yesterday by the People’s Daily, the mouthpiece of the Chinese Communist Party, questioning “Nvidia, how can we trust you?” has sent ripples through the tech world.
The controversy stems from concerns surrounding Nvidia’s H20 chip, specifically allegations regarding potential “tracking” and “remote shutdown” capabilities. The People’s Daily article suggests these vulnerabilities could have severe repercussions, painting scenarios ranging from electric vehicles losing power on highways to the failure of remote surgery equipment and mobile payment systems. Nvidia has responded, stating that its chips contain no “backdoors” allowing for remote access or control. However, this denial appears to have done little to assuage lingering public anxieties.
The article emphasized that regaining market trust requires Nvidia to provide irrefutable proof of its chips’ security, complying with regulatory demands. The piece framed cybersecurity as not only a matter of daily life but also critical to corporate survival and national security. Reference was made to recent cyberattacks targeting Russian public services and a sudden outage affecting Starlink’s satellite internet service, disrupting connectivity for 60,000 users globally, further underscoring the significance of robust cybersecurity measures.
Adding another layer of complexity, U.S. Senator Tom Cotton (R-AR) introduced the “Securing Semiconductor Supply Chains Act” in June. This proposed legislation aims to “prevent advanced chips from falling into the hands of America’s adversaries and protect the integrity of American products.”
The bill proposes a system to track the location of hardware components, including graphics cards and processors, aiming to prevent their illegal diversion.
Specifically, the bill would mandate the creation of a location verification mechanism within six months of enactment for advanced chips subject to export controls, as well as products containing such chips. Furthermore, exporters would be required to report to the Bureau of Industry and Security (BIS) any instances where their products are transferred from their intended location or subjected to tampering.
According to a report in Caijing Magazine, cybersecurity experts believe the regulatory scrutiny targets potential risks. Whether Nvidia will be required to take corrective action depends on the veracity of those risks and doesn’t necessarily imply fines or other legal penalties will follow.
The expert stated that the regulatory body might be seeking clarification following overseas media reports raising concerns about the risks associated with Nvidia’s products. The goal could be to mitigate potential risks before the large-scale entry of Nvidia’s H20 products into the Chinese market.
Observers within China’s AI sector are suggesting that Nvidia’s verbal reassurances may not be enough to convince regulators. They believe Nvidia CEO Jensen Huang needs to provide concrete, verifiable evidence demonstrating its chips are free from backdoors.
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