Nvidia is said to be testing software that can track the location of its AI chips due to increasing reports of them being smuggled into China.
Reuters first reported, citing unnamed sources, that Nvidia has built location technology that can track which country a chip is located in. The software tracks computing performance, but can also figure out the chip’s location due to communication delays between servers.
The software will be optional for customers and will initially be available for Blackwell chips, according to Reuters.
Multiple reports have surfaced in recent days claiming that Chinese DeepSeek AI models are being trained on smuggled Nvidia Blackwell chips. Nvidia responded to these reports by saying it has seen no evidence of this type of smuggling.
“We have not yet received any evidence or information that the ‘phantom data centers’ built to deceive us and our OEM partners have been dismantled, smuggled, and rebuilt elsewhere. While such smuggling seems far-fetched, we are pursuing every tip we receive,” an NVIDIA spokesperson told TechCrunch.
The news comes days after Nvidia received permission from the US government on Monday to begin selling its H200 AI chips to approved customers in China. This announcement only pertains to the older H200 chips, not the company’s Blackwell chips.
