Nvidia builds AI chip-tracking software amid pressure over China

Nvidia builds AI chip-tracking software amid pressure over China

Nvidia has reportedly developed location verification technology that will permit it to determine the place its laptop chips are getting used – a transfer that comes as the AI big faces pressure to stop China from smuggling its most highly effective gear.

The software is predicted to be applied on Nvidia’s top-of-line Blackwell chips, that are topic to strict export controls stopping their sale to China.

Nvidia’s clients would have the choice of putting in the software, Reuters reported, citing sources aware of the matter.

Nvidia CEO Jensen Huang (R) speaks alongside US President Donald Trump about investing in America, at the White House in Washington, DC, on April 30. AFP through Getty Images

While the feature was constructed to assist shoppers assess the performance of their Nvidia chips, it may possibly present a normal location based on the time delay that happens as the chips talk 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 an announcement. “This customer-installed software agent leverages GPU telemetry to monitor fleet health, integrity and inventory.”

Lawmakers from each events have called on Nvidia to make sure its best chips aren’t falling into the palms of Chinese companies that are competing with US tech giants like OpenAI and Google to develop superior AI techniques.

Earlier this week, President Trump announced that Nvidia can be allowed to promote its H200 chips, which preceded the Blackwell mannequin, to China – with the US authorities accumulating a 25% payment 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 beforehand restricted such chip sales.

Nvidia founder and CEO Jensen Huang appears to be like on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025. AFP through Getty Images

While sales of the Blackwell and upcoming Rubin fashions are still restricted, that hasn’t stopped some Chinese companies from gaining entry via illicit channels.

DeepSeek, the Chinese AI agency that has developed fashions that carry out the same or better than US rivals, has been utilizing a number of thousand Blackwell chips to build its next mannequin, The Information reported Wednesday.

The banned chips have been reportedly smuggled into China in a fancy scheme wherein they have been bought in international locations that aren’t topic to export controls. The servers housing the chips have been then taken aside and imported piecemeal to China.

Huang speaks during the Live Keynote Pregame during the Nvidia GTC (GPU Technology Conference) in Washington, DC, on Oct. 28. AFP through Getty Images

The majority of Nvidia’s chips are manufactured in Taiwan.

Nvidia is just one in every of many firms navigating difficulties associated to China’s winner-takes-all AI race with the US.

The former CEO of Dutch chipmaker Nexperia, which makes chips utilized in automobiles and family home equipment, alleged in a Wednesday New York Times article that the company’s Chinese house owners had been plotting since 2019 to switch its technology and mental property again to China.

The scenario reportedly culminated in September when Dutch authorities stepped in to grab management of Nexperia.

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