China cautions tech firms over Nvidia H20 AI chip purchases, sources say

-Chinese authorities have summoned domestic companies including major internet firms Tencent and ByteDance over their purchases of Nvidia’s H20 chips, asking them to explain their reasons and expressed concerns over information risks, three people familiar with the matter told Reuters.

The Cyberspace Administration of China and other agencies also held meetings with Baidu and smaller Chinese tech firms in recent weeks, said one of the two people and a third source.

The Chinese officials asked companies why they needed to buy Nvidia chips when they…