Nvidia said on Thursday that its chips do not contain "backdoors," following concerns from China over the security of the company's H20 artificial intelligence chip.
Chinese companies showcased A.I. gains in Shanghai this week.
Chinese authorities summoned Nvidia representatives on Thursday to discuss "serious security issues" over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington.
Nvidia earlier this month said the U.S. government is giving permission to sell its H20 microchip again in China — but now a Chinese regulator is raising a red flag.
Rolls-Royce phenomenal stock-market gains continued on Thursday as the engine maker lifted its outlook for the year.
OpenAI said it is launching a Stargate AI data center in Norway which will be designed and built by Nscale and Aker. The site aims to deliver 100,000 NVIDIA graphics processing units (GPU) by the end of 2026.
According to China's Cyberspace Administration, Nvidia met with Beijing officials on Thursday regarding potential national security risks posed by its H20 graphics processing units. Washington this month allowed Nvidia to resume sales of its H20 AI chips to China, reversing an effective ban imposed in April.
Shares of tech giant NVIDIA Corp NASDAQ: NVDA were trading roughly flat on Tuesday afternoon, after hitting yet another record high, just shy of the $180 mark, earlier in the day.
Nvidia stock is set to be driven by investment in artificial-intelligence infrastructure from Microsoft and Meta but it also needs to fend off rivals.
The chip company is waiting to sell its H20 chips in China again, which a Mizuho analyst said will help the case for its earnings per share to reach $7 next fiscal year.
Key Points NVIDIA's Market Impact: The recent approval for NVIDIA to sell H20 GPUs in China is projected to add approximately $5 billion in quarterly sales, potentially increasing annual revenue beyond $25 billion as AI demand grows.
Shares of NVIDIA Corp. (NASDAQ:NVDA) gained 5.05% over the past five trading sessions, bringing its year-to-date gain to 28.84%.