Nvidia builds AI chip-tracking software while facing pressure over China smuggling: report

Nvidia builds AI chip-tracking software while facing pressure over China smuggling: report

By Thomas Barrabi
Publication Date: 2025-12-10 20:13:00

Nvidia has reportedly developed location verification technology that will allow it to identify where its computer chips are being used – a move that comes as the AI giant faces pressure to prevent China from smuggling its most powerful gear.

The software is expected to be implemented on Nvidia’s top-of-line Blackwell chips, which are subject to strict export controls preventing their sale to China.

Nvidia’s customers would have the option of installing the software, Reuters reported, citing sources familiar with the matter.

Nvidia CEO Jensen Huang (R) speaks alongside US President Donald Trump about investing in America, at the White House in Washington, DC, on April 30. AFP via Getty Images

While the feature was built to help clients assess the performance of their Nvidia chips, it can provide a general location based on the time delay that occurs as the chips communicate with Nvidia’s servers.

“We’re in the process of implementing a new software service that empowers data center operators to monitor the health and inventory of their entire AI GPU fleet,” Nvidia said in a statement. “This customer-installed software agent leverages GPU telemetry to monitor fleet health, integrity and inventory.”

Lawmakers from both parties have called on Nvidia to ensure its best chips aren’t falling into the hands of Chinese firms that are competing with US tech giants like OpenAI and Google to develop advanced AI systems.