Nvidia is reportedly testing tracking software as chip smuggling rumors swirl

Nvidia is reportedly testing software that can track the location of its AI chips as reports of its chips being smuggled into China grow.

Nvidia has created location verification technology that will allow it to track which country a chip is located in, Reuters Originally reportedCiting unknown sources. This software tracks computing performance but also reveals the chip’s location through communication delays between servers.

Reuters said the software would be optional for customers and would be made available for Blackwell chips first.

In the last few days, many reports have come out in which allegations have been made against China’s DeepSeek AI model. Trained on smuggled Nvidia Blackwell chips.Nvidia responded to these reports, saying it had seen no evidence of this type of trafficking,

An Nvidia spokesperson told TechCrunch, “We have not seen any confirmation that ‘phantom datacenters’ were created to defraud us and our OEM partners or that they have been repurposed, smuggled, and rebuilt elsewhere. While this type of trafficking seems far-fetched, we follow up on any information we receive.”

This news comes just days after Nvidia received the green light from the US government to begin selling its H200 AI chips to approved customers In China on Monday. This announcement only pertains to the older H200 chips, and not to the company’s Blackwell chips.

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