Nvidia is reportedly testing new software designed to track the physical location of its AI chips. This development follows increasing reports of its chips being smuggled into China. The location verification technology would allow Nvidia to identify which country a chip is operating in by analyzing computing performance and the communication delay between servers. According to reports, this software will be optional for customers and will first be made available for the latest Blackwell chips.
These reports emerge alongside allegations that China’s DeepSeek AI models were trained using smuggled Nvidia Blackwell chips. Nvidia has responded to these claims, stating it has not seen evidence of such smuggling activity. A company spokesperson said that while such elaborate smuggling operations seem far-fetched, Nvidia investigates every tip it receives.
This news arrives shortly after Nvidia received U.S. government approval to begin selling its older H200 AI chips to approved customers in China. It is important to note that this approval specifically concerns the H200 chips and does not include the company’s newer and more advanced Blackwell chips.