Nvidia is working on technology capable of verifying the physical location of its AI chips. While officially marketed as a fleet management tool, the feature could help enforce export restrictions.
According to a report from Reuters, chipmaker Nvidia has developed location verification technology that can indicate which country its processors are operating in. Sources say this move could help prevent the smuggling of AI chips into nations facing export bans.
The feature functions as a software option that customers can install, utilizing the confidential computing capabilities of the graphics processing units. Technically, the localization doesn't rely on GPS but rather on network latency analysis: the software measures the time delay in communication with Nvidia servers. This data allows the system to infer the location with an accuracy comparable to other internet-based services.
Officially, Nvidia frames the tool differently. In a statement, the company said it is implementing a service designed to let data center operators monitor the health and inventory of their entire AI GPU fleet. The feature is expected to be available first for the new Blackwell generation.
Navigating US pressure and tension with China
The development comes in response to demands from US policymakers. Both the White House and Congress are pushing for measures to cut off the illegal export of high-performance chips to China.
At the same time, the technology is sparking suspicion in Beijing. China's cybersecurity agency has already questioned Nvidia about whether its products contain backdoors that could grant access to the US. Nvidia vehemently denies this. According to Reuters, software experts confirm that location verification is possible without compromising chip security.
Recently, the US Department of Justice filed charges against smuggling rings linked to China. These groups allegedly attempted to illegally export Nvidia chips worth more than $160 million.
