According to DeepLearning.AI, after the U.S. government cleared Nvidia and AMD to resume AI chip sales to China, Chinese authorities initiated a security review of Nvidia's H20 AI chip and encouraged domestic firms to purchase locally produced GPUs. Officials are investigating alleged 'backdoor' risks in the Nvidia H20 chip, a claim Nvidia disputes, highlighting increasing scrutiny and regulatory barriers for foreign AI hardware providers in China. This development signals a shift towards supporting domestic AI chipmakers, potentially accelerating China's self-reliance in the AI hardware sector and impacting the business prospects of leading U.S. AI chip firms in the Chinese market (source: DeepLearning.AI, August 22, 2025).