Nvidia Develops Location Verification Tech to Curb Smuggling of AI Chips

Nvidia (NVDA, Financials) has developed new location verification technology designed to identify the country in which its AI chips are running, according to people familiar with the effort. The feature, which has been demonstrated privately but not yet released, would be an optional software update that data center customers can install to monitor GPU fleets and detect unauthorized movements.

The system uses GPU telemetry and confidential computing features to assess performance and measure communication delays with Nvidia-run servers, offering a geolocation estimate similar to widely used internet services. Nvidia said the tool is part of a broader service aimed at helping operators track the health and integrity of their AI hardware.

The capability is expected to debut first on Blackwell-generation chips, which carry enhanced security and attestation functions. Nvidia is also examining ways to extend the feature to older Hopper and Ampere processors.

The move comes as Washington pressures chipmakers to prevent smuggling of advanced processors to China and other restricted markets. The Justice Department has pursued multiple cases tied to attempts to reroute high-end GPUs into China, fueling bipartisan demands for location tracking. At the same time, Chinese regulators have questioned whether U.S. oversight could create backdoor access to Nvidia hardware, a claim the company has strongly denied.

Nvidia's next update on rollout timing and implementation details is expected as its Blackwell platform expands across data center customers.