U.S. authorities have reportedly embedded secret GPS trackers in shipments of servers containing advanced AI chips to detect possible rerouting to China, according to a Reuters report. The government has not officially confirmed the practice.
Reuters sources say agencies have started placing tracking devices in select shipments of high-end AI chips, aiming to catch any attempts to divert hardware to countries like China, where U.S. export restrictions apply. Industry insiders told Reuters that shipments from companies like Dell and Super Micro, outfitted with Nvidia and AMD chips, have been targeted. The trackers are sometimes hidden in the packaging, or even installed directly in the servers.
The Bureau of Industry and Security at the U.S. Department of Commerce is reportedly overseeing the program, with Homeland Security Investigations and the FBI also potentially involved. In some cases, the trackers are installed with a court order or the cooperation of uninvolved companies, but in other instances, reportedly without the companies' knowledge. Resellers in China are said to be actively checking shipments for tracking devices to avoid detection.
New tracking requirements in discussion
Dell told Reuters it was unaware of any such U.S. government initiative. Super Micro pointed to its existing security measures but did not comment on this specific case. Nvidia declined to comment, and AMD did not respond to requests for comment. China's foreign ministry said it was not aware of the allegations.
In a recent case, two Chinese nationals were charged with illegally exporting Nvidia AI chips worth tens of millions of dollars to China. According to court documents, a co-conspirator instructed an accomplice to check a shipment for trackers. The hardware, sourced from Quanta, included Nvidia chips.
The U.S. government is currently considering whether to require tracking technology in all exported chips in the future. The goal is to prevent sensitive technology from ending up in countries like China or Russia.
