Nvidia Develops Location Verification for AI Chips to Prevent Smuggling
Nvidia has designed a new location verification technology capable of identifying the country in which its chips operate, according to individuals familiar with the development. The feature aims to help prevent the illicit export of its advanced artificial intelligence processors to regions under trade restrictions.
Advanced Software to Track Chip Activity
The company has privately demonstrated the technology in recent months but has not yet released it publicly. Nvidia intends to offer the verification system as optional software that customers can install. It draws on the confidential computing capabilities built into the company’s graphics processing units (GPUs), sources revealed.
According to an Nvidia official, the software was initially developed to help customers monitor the computing performance of their GPU fleets, a routine practice in large data centres. It uses the latency between Nvidia’s servers and the deployed chips to estimate their physical location, providing accuracy comparable to other internet-based tracking methods.
In a statement, Nvidia explained, “We’re in the process of implementing a new software service that empowers data centre operators to monitor the health and inventory of their entire AI GPU fleet. This customer-installed software agent leverages GPU telemetry to monitor fleet health, integrity and inventory.”
Enhanced Security in New ‘Blackwell’ Chips
The location feature will debut in Nvidia’s latest “Blackwell” processors, which offer improved security mechanisms for a process known as “attestation.” The company is also exploring ways to extend similar features to earlier models, including its Hopper and Ampere series.
If implemented, the update could respond to growing pressure from the White House and members of both major U.S. political parties to curb the illegal transfer of high-end AI chips to China and other restricted destinations. These concerns have intensified following several U.S. Department of Justice cases targeting smuggling operations accused of attempting to move more than $160 million worth of Nvidia products into China.
Regulatory Scrutiny and Geopolitical Tension
However, the U.S. push for chip location tracking has drawn criticism from China’s top cybersecurity authority, which summoned Nvidia for questioning. Chinese regulators have sought clarification over whether the new technology could create backdoors, potentially allowing the U.S. to override chip security.
The issue resurfaced this week after President Donald Trump announced plans to permit exports of Nvidia’s H200 chips—the predecessor to its flagship Blackwell line—to China. Analysts have questioned whether Beijing would authorise domestic companies to purchase them amid the ongoing scrutiny.
Nvidia has repeatedly denied the existence of any backdoors in its chips. Industry experts note that the company can incorporate location verification features without undermining the integrity or security of its semiconductor technology.
with inputs from Reuters