The writer is the author of ‘Chip War’
Shortly after US President Donald Trump changed his mind last month and decided that there was, in fact, no security risk in allowing Chinese customers to buy Nvidia’s advanced H20 artificial intelligence chips, Beijing appeared to hesitate. Trump’s reversal looked like a straightforward win for China. Yet Beijing ordered its regulators to investigate whether Nvidia’s chips have “loopholes and back doors”.
Now that Nvidia has agreed to pay 15 per cent of its Chinese H20 chip sale revenues to the US government, it can restart sales — but first it must convince Beijing that its chips do not pose a security risk.
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