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.
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.
Earlier this week, President Trump announced that Nvidia would be allowed to sell its H200 chips, which preceded the Blackwell model, to China – with the US government collecting a 25% fee on the transactions.
The announcement marked a big win for Nvidia CEO Jensen Huang, who had lobbied aggressively against the sales limits.
The announcement marked a reversal for the Trump administration, which previously restricted such chip sales.
While sales of the Blackwell and upcoming Rubin models are still restricted, that hasn’t stopped some Chinese firms from gaining access through illicit channels.
DeepSeek, the Chinese AI firm that has developed models that perform the same or better than US rivals, has been using several thousand Blackwell chips to build its next model, The Information reported Wednesday.
The banned chips were reportedly smuggled into China in a complex scheme in which they were purchased in countries that aren’t subject to export controls. The servers housing the chips were then taken apart and imported piecemeal to China.
The majority of Nvidia’s chips are manufactured in Taiwan.
Nvidia is just one of many companies navigating difficulties related to China’s winner-takes-all AI race with the US.
The former CEO of Dutch chipmaker Nexperia, which makes chips used in cars and household appliances, alleged in a Wednesday New York Times article that the company’s Chinese owners had been plotting since 2019 to transfer its technology and intellectual property back to China.
The situation reportedly culminated in September when Dutch authorities stepped in to seize control of Nexperia.
