The Model-Chips Ecosystem Innovation Alliance has 10 members, including Huawei’s Ascend unit and Tencent-backed AI firm StepFun.

The letter states that allowing sales of the H20 AI chip to China could hurt the U.S.'s AI "edge" and further chip bottlenecks in the U.S.

The Cyberspace Administration of China says it has interviewed Nvidia over risks associated with the potential tracking functions of the chips.