Nvidia Trials Location Tracking for AI Chips to Prevent Smuggling from China

Nvidia's Location Verification Technology: Nvidia is testing a location verification feature for its AI chips, starting with the Blackwell chips, to prevent smuggling to banned countries like China. The software estimates chip locations by measuring communication delays with Nvidia's servers.

Smuggling Operations and Legal Actions: The U.S. Department of Justice has initiated Operation Gatekeeper, leading to arrests and seizures related to smuggling networks attempting to export Nvidia chips worth over $160 million to China, using fraudulent methods to evade detection.

Trump's Export Policy on H200 Chips: President Trump announced a reversal of export restrictions on Nvidia's H200 chips to approved customers in China, which has drawn criticism from senators who argue it poses economic and national security risks.

China's Response and Domestic Production Plans: In response to U.S. chip exports, China is implementing an approval process for H200 chip access and is accelerating its domestic chip production, aiming to triple AI chip output by 2026.