China has summoned Nvidia to address alleged security concerns regarding its H20 chip, claiming it contains a backdoor for location tracking and remote shutdown capabilities. This follows a recent U.S. decision to allow Nvidia to sell the chip in China, which the company is using to rebuild its market presence. Experts express skepticism about the allegations due to a lack of detailed evidence.

Chinese companies have reportedly smuggled approximately $1 billion worth of NVIDIA AI chips into the country over the past three months, despite tightening export controls from the United States. Some firms are openly discussing future availability of these chips, indicating a potential challenge for regulators trying to curb unauthorized imports.

Megaspeed, a Singaporean data center company linked to Chinese tech firms, is under investigation by U.S. officials for potentially helping China circumvent export restrictions on Nvidia's AI chips. The inquiry raises concerns about Nvidia's oversight of chip distribution and the company's rapid growth amid fears of its technology aiding adversaries.