Nvidia Reportedly Tests Tracking Software Amid Chip Smuggling Concerns

Nvidia's Efforts to Monitor AI Chip Locations

Reports indicate that Nvidia is currently evaluating software designed to pinpoint the geographical location of its artificial intelligence chips. This development arises amidst increasing concerns regarding the illicit trafficking of these chips into China.

Location Verification Technology

According to sources cited by Reuters, Nvidia has developed a location verification system. This technology enables the company to determine the country in which a chip is operating.

The software functions by monitoring computing performance. Crucially, the latency in data transmission between servers also provides an indication of a chip's physical location.

Implementation and Availability

It is understood that the use of this software will be voluntary for Nvidia's clientele. Initial availability will be limited to the Blackwell series of chips, as reported by Reuters.

Allegations of Smuggling and Nvidia's Response

Recent reports suggest that China’s DeepSeek AI models may have been trained utilizing Nvidia Blackwell chips that were illegally imported. Nvidia has publicly stated that it has not yet found evidence to support these claims.

A Nvidia spokesperson communicated to TechCrunch: “We have not received any substantiated information or credible leads regarding ‘phantom data centers’ built for deception, disassembled, smuggled, and reassembled elsewhere.”

The spokesperson further added, “Although such smuggling appears improbable, we investigate every tip we receive.”

Recent Regulatory Developments

This news follows closely on the heels of the U.S. government’s authorization of Nvidia to begin sales of its H200 AI chips to pre-approved customers in China. This approval, however, is specific to the older H200 models and does not extend to the newer Blackwell chips.

Here's a summary of key points:

• Nvidia is testing location tracking software for its AI chips.
• The software uses performance data and communication latency to determine location.
• It will initially be available for Blackwell chips.
• Nvidia denies reports of widespread smuggling but is investigating.
• The U.S. has approved sales of H200 chips to China, but not Blackwell.