Reuters: Nvidia Developing Geolocation Technology to Combat AI Chip Smuggling

Reuters, citing sources, reported that Nvidia is developing a new geolocation verification technology designed to identify the country where its electronic chips are operating. This proactive measure is intended to combat the smuggling of its AI chips to countries where exports are prohibited, particularly China.

Technology Details and Anticipated Launch:

• Nature of the Tech: The technology, tested privately in recent months but not yet released, will be a software option that customers can install.

• How it Works: The system will utilize the Confidential Computing capabilities of Nvidia's Graphics Processing Units (GPUs). It will log the chip's location by leveraging the time delay in communicating with Nvidia-managed servers, alongside data from other internet-based services.

• Official Goal: Officially, the technique aims to help customers track the chip's overall computing performance, a common practice for large data centers.

• Nvidia Statement: The company confirmed: "We are nearing the introduction of a new software service that will enable data center operators to fully monitor the health and inventory of their AI GPUs."

Context of Anti-Smuggling Efforts:

• Responding to Pressure: This potential update is a response to increasing calls from the White House and bipartisan members of Congress for measures to prevent the smuggling of AI chips to China.

• Criminal Cases: These calls intensified after the Department of Justice filed criminal cases against China-linked smuggling rings, which allegedly attempted to move over $160 million worth of Nvidia-produced chips into China.