NVIDIA

A *People’s Daily* commentary questioning the security of Nvidia’s H20 chip has sparked debate over potential “tracking” and “remote shutdown” vulnerabilities. Nvidia denies any “backdoors,” but China seeks verifiable proof of security, emphasizing cybersecurity’s importance. U.S. legislation, the “Securing Semiconductor Supply Chains Act,” proposes tracking advanced chips to prevent illegal diversion. Experts believe regulatory scrutiny targets potential risks associated with Nvidia’s products, aiming to ensure their security before widespread adoption in China. Verifiable evidence from Nvidia CEO Jensen Huang is needed to alleviate concerns.

NVIDIA quietly added InnoScience, a Chinese GaN manufacturer, to its list of 800V DC power architecture partners, making it the sole Chinese supplier. This triggered a surge in InnoScience’s stock price in Hong Kong. InnoScience confirmed the collaboration, noting its GaN technology’s role, but cautioned that it’s still in the testing phase without concrete orders. InnoScience, the world’s first IDM mass-producing 8-inch GaN wafers, leads in GaN discrete device shipments, serving various sectors, including EVs and data centers.

NVIDIA’s stock surge, fueled by the AI boom, has pushed its market cap past $4 trillion and created significant wealth for its employees. CFO Colette Kress and EVP Jay Puri are the latest to join the billionaire ranks due to their NVIDIA stock holdings, bringing the company’s total to six. Investor reports suggest around 78% of NVIDIA employees are now millionaires. CEO Jensen Huang humorously acknowledged his role in creating immense wealth within his management team.

Intel plans to spin off its Network and Edge (NEX) business unit, a division developing network and communication chips with $5.8 billion in revenue in 2024. This strategic realignment signifies a pullback from competing with Nvidia in the communication chip market. NEX, with thousands of employees globally, including 400 in Israel, will become an independent entity focused on silicon solutions for communications, networking, and Ethernet connectivity. The move signals Intel abandoning its pursuit of a vertically integrated offering of AI hardware and software, similar to Nvidia’s model with Mellanox.

In 2018, Nvidia’s Jensen Huang proposed a collaboration with Samsung encompassing HBM, advanced process node development, and CUDA advancement. Reportedly rejected due to Samsung’s internal challenges, this decision allowed Nvidia to partner with SK Hynix for HBM, a lucrative alliance that saw SK Hynix’s share price surge. Meanwhile, Samsung now lags in HBM production and the AI chip foundry market, dominated by TSMC for Nvidia’s chips. Samsung is now trying to catch up, aiming for HBM4 contracts.

Nvidia CEO Jensen Huang, despite the company’s $4 trillion market cap, feels constant pressure, stating Nvidia is “30 days from going out of business.” He attributes this to the rapid pace of technological obsolescence in the chip and AI industries. Nvidia faced near-bankruptcy twice: once due to the Dreamcast chipset failure and again from a graphics card design flaw leading to recalls. Huang’s commitment to innovation fuels his drive to guide Nvidia far into the future.

In a CCTV News interview, Nvidia CEO Jensen Huang lauded China’s technological innovation and vitality, emphasizing Nvidia’s 30-year commitment to the market. Huang highlighted companies like DeepSeek, utilizing the H20 chip for AI innovation, and Xiaomi’s advancements in electric vehicles. While avoiding direct answers regarding advanced chip supply under potential limitations, he noted that constraints can foster innovation, referencing Alibaba and DeepSeek’s achievements. He acknowledged China’s impressive development speed in the EV sector.

NVIDIA’s Jensen Huang praised China’s AI advancements, highlighting his long-standing collaboration with Xiaomi CEO Lei Jun. Their partnership spans smartphones, AI, and autonomous driving. Huang admires China’s innovative engineers and vast consumer base. During a recent meeting, Lei Jun showcased Xiaomi’s SU7 Ultra electric vehicle, prompting Huang to commend its technology and design, expressing his desire to purchase one despite its unavailability in the US. Their decade-long collaboration started when NVIDIA was less established.

Zhou Hongyi, chairman of 360 Group, views Nvidia’s H20 chip for China as a sign of ongoing US-China AI competition. Despite Nvidia’s 30-year lead, Zhou and Nvidia CEO Jensen Huang acknowledge Huawei’s remarkable progress in GPU development. Huang highlights Nvidia’s AI ecosystem investments, while Huawei’s Ren Zhengfei emphasizes using methods like stacking and clustering to compensate for single-chip limitations, focusing on mid-to-low-end chips and software advancements.

Nvidia CEO Jensen Huang met with China’s Minister of Commerce Wang Wentao, signaling Nvidia’s continued commitment to the Chinese market despite geopolitical tensions. Wang affirmed China’s openness to foreign investment and encouraged Nvidia to provide reliable products. Huang emphasized the attractiveness of the Chinese market and Nvidia’s intent to deepen AI cooperation. The meeting highlights Nvidia’s balancing act between US restrictions and China’s commercial potential. Huang has stressed the importance of the Chinese market and existing fruitful relationships.