Yazılar

China Presses Tech Firms Over Nvidia H20 AI Chip Purchases Amid Security Concerns

/in /tarafından

Chinese regulators have questioned major domestic tech firms, including Tencent, ByteDance, and Baidu, over their purchases of Nvidia’s H20 AI chips, sources told Reuters. The Cyberspace Administration of China (CAC) and other agencies asked companies to justify why they were opting for U.S. chips instead of domestic alternatives and raised concerns that data submitted to Nvidia for U.S. government review could expose sensitive client information.

While Beijing has not issued a direct ban on Nvidia’s H20, companies were cautioned about its use in government-related or security-sensitive projects. Bloomberg earlier reported that firms received official notices discouraging reliance on the chip, while The Information claimed ByteDance, Alibaba, and Tencent were ordered to halt purchases outright. These reports could not be independently confirmed by Reuters.

Nvidia defended the H20, stressing it is “not a military product or for government infrastructure,” while noting China has never relied on U.S. chips for government operations. The chipmaker designed the H20 specifically for China after U.S. export curbs in late 2023 restricted sales of its most advanced processors. Although Washington briefly banned its sale this year, the Trump administration reversed the decision in July, restoring limited access.

The scrutiny threatens a key revenue source for Nvidia, which made $17 billion from China last fiscal year — about 13% of its global revenue. State media have recently amplified criticism, portraying the H20 as technologically inferior and a security risk. Meanwhile, Chinese chipmakers like Huawei are working to produce domestic AI processors rivaling Nvidia’s offerings, though U.S. sanctions on advanced equipment remain a hurdle for large-scale production.

The tensions underscore Beijing’s push for self-sufficiency in semiconductors as Washington weighs tighter controls. U.S. President Donald Trump has hinted he may allow Nvidia to sell a scaled-down version of its Blackwell AI chip in China, even as concerns grow over the military applications of advanced AI. At the same time, an unusual deal now requires Nvidia and AMD to share 15% of China chip sales revenue with the U.S. government.

Irish Data Regulator Launches New Inquiry into TikTok Over Data Storage in China

/in /tarafından

Ireland’s Data Protection Commission (DPC) has opened a fresh inquiry into TikTok concerning the storage of European users’ data on servers in China. This follows TikTok’s April disclosure that some data had been temporarily stored on Chinese servers, an issue not addressed in the regulator’s earlier investigation.

TikTok, owned by China’s ByteDance, was fined €530 million ($620 million) in May by the Irish regulator over concerns about its handling of European user data, some of which was reportedly accessed remotely by employees in China.

As TikTok’s lead regulator in the EU—since the company’s European headquarters is based in Ireland—the DPC will now specifically focus on the China data storage issue. Previously, TikTok had repeatedly assured the regulator over a four-year probe that it did not store EU data in China. However, in April, the company revealed it had found that a small amount of data was stored in China for about two months before being deleted.

A TikTok spokesperson said the company identified the issue internally, promptly deleted the limited data involved, and informed the DPC. The spokesperson added, “Our proactive report to the DPC underscores our commitment to transparency and data security.”

TikTok is currently appealing the May fine, warning that the ruling could set a broad precedent affecting companies and industries operating globally across Europe.

TikTok building U.S.-only app with separate algorithm and data systems

/in /tarafından

TikTok is developing a standalone U.S. version of its platform, complete with a distinct algorithm and data system, to comply with U.S. legislation that mandates the divestment of its American operations. The project, internally known as “M2,” aims to meet a September deadline and could clear the path for a potential sale of TikTok’s U.S. business, Reuters reports, citing employees with direct knowledge.

The move involves duplicating TikTok’s codebase — including AI models, algorithms, features, and U.S. user data — from its global app to an independent U.S.-specific version. It is TikTok’s most ambitious technical separation effort to date and would represent the deepest structural divide between ByteDance’s U.S. and international operations. The U.S.-only version would function much like Douyin, TikTok’s China-specific app, and would not be visible to users outside the U.S.

The initiative responds to the 2024 law requiring ByteDance to divest TikTok or face a ban, amid long-standing U.S. concerns about data privacy and national security. While content from the current app is expected to carry over, the new recommendation engine will be trained solely on U.S. user data. This is expected to shift content visibility toward American creators and possibly limit international reach for non-U.S. influencers.

Sources revealed that since January, TikTok has been removing non-U.S. user data from Oracle’s American data centers to comply with separation demands. Meanwhile, ByteDance has worked on splitting its algorithm’s codebase — a move it previously denied.

If the technical split is completed, U.S. operations would be managed independently of TikTok’s global team, although ByteDance engineers might remain involved on a limited basis. This has raised internal questions about whether the U.S. algorithm will retain its effectiveness without access to ByteDance’s global engineering expertise.

A potential sale would involve a joint venture including American investors such as Susquehanna International Group, General Atlantic, KKR, and possibly Oracle, along with new players like Blackstone and Andreessen Horowitz. ByteDance would retain a minority stake. However, Beijing’s approval remains uncertain due to China’s export restrictions on recommendation algorithms, a key concern in the stalled 2020 negotiations.

The separation effort is unfolding against a broader backdrop of U.S.-China trade tensions. While former President Donald Trump said last week he would resume discussions with China over the sale, he admitted uncertainty over Beijing’s cooperation, adding, “I think the deal is good for China and it’s good for us.”