Nvidia’s new tech could track AI chips and stop global smuggling

SAN FRANCISCO: Nvidia has developed a new location verification technology designed to determine the country in which its AI chips are being used, according to sources familiar with the matter. The feature could help prevent its GPUs from being smuggled into nations where their export is restricted.

The technology, demonstrated privately by Nvidia in recent months, would be offered as a software option that customers can install. It leverages the confidential computing capabilities of Nvidia GPUs to track performance and, through server communication delays, estimate the chip’s location with a precision comparable to other internet-based services.

“This software allows data center operators to monitor the health, integrity, and inventory of their entire AI GPU fleet,” Nvidia said, noting that the system uses GPU telemetry for fleet management. The feature will debut on Nvidia’s Blackwell chips, which include enhanced security for attestation, with the company exploring options for older Hopper and Ampere models.

The move comes amid calls from U.S. lawmakers and the White House to prevent AI chip exports to restricted countries such as China. Recent criminal cases highlighted attempts to smuggle over $160 million worth of Nvidia chips. Nvidia maintains that its products contain no backdoors and experts say location verification can be implemented without compromising chip security.