NVIDIA is reportedly testing tracking software to prevent AI chip smuggling
Reuters reported that Nvidia has developed technology that can track the location of its AI chips, a move that appears to be a response to an increasing number of cases of the company's chips being smuggled into embargoed countries.
Exclusive: Nvidia builds location verification tech that could help fight chip smuggling | Reuters
Nvidia is reportedly testing tracking software as chip-smuggling rumors swirl | TechCrunch
https://techcrunch.com/2025/12/10/nvidia-is-reportedly-testing-tracking-software-as-chip-smuggling-rumors-swirl/
The United States, where NVIDIA is based, is wary of the possibility of the chips being used for military purposes and has banned the export of high-performance AI chips to certain countries, including China. However, there have been many confirmed cases where chips have slipped through these restrictions and been sent to China and other countries.
The Department of Justice indicted two Chinese nationals for exporting high-performance chips such as the NVIDIA H100 to China without a license - GIGAZINE
Reuters reports that Nvidia has developed technology that can track the location of chips to prevent them from being smuggled.
This technology utilizes the 'telemetry' data transmission function that NVIDIA has built into its GPUs. It works by installing software on the GPU. Originally, it was designed to track computing performance, but now it can estimate the chip's location based on communication latency with a server operated by NVIDIA.
This feature will first be available on NVIDIA's latest chip, Blackwell.
In recent days, multiple reports have emerged alleging that China's DeepSeek AI models were trained on smuggled Blackwell chips, to which NVIDIA responded, 'We have not seen any evidence of this type of smuggling.'
DeepSeek reveals it smuggled NVIDIA Blackwell chips, which should have been unavailable for new AI development, into China through a complex route - GIGAZINE
The United States has indicated its intention to lift the ban on exports of older generation chips.
US Department of Commerce approves export of NVIDIA H200 chips to China - GIGAZINE
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