Technical

Srinivasa Reddy Kandi: Nvidia Tests Chip-Tracking Software Amid Rising Concerns Over Blackwell Smuggling to China

December, 11, 2025-05:24

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Nvidia Tests Chip-Tracking Software Amid Rising Concerns Over Blackwell Smuggling to China:

Nvidia is reportedly experimenting with new tracking software designed to identify the geographic location of its AI chips, following growing concerns that its advanced processors are being smuggled into China.

According to a Reuters report citing anonymous sources, Nvidia has developed location-verification technology capable of determining the country in which a chip is operating. The system monitors computing performance, and variations in communication latency between servers can help infer a chip’s physical location.

The feature is expected to be optional for customers and will debut first on Nvidia’s next-generation Blackwell series chips.

Interest in chip-tracking comes as multiple reports suggest that China-based companies, including the developers behind DeepSeek AI models, may have obtained smuggled Blackwell chips. Nvidia denied having evidence of such activity.

“We haven’t seen any substantiation or received any tips of ‘phantom data centers’ being created to deceive us and our OEM partners, only to be dismantled and relocated elsewhere,” an Nvidia spokesperson told TechCrunch. “While such smuggling appears unlikely, we investigate every tip carefully.”

The development also follows the U.S. government’s recent approval allowing Nvidia to resume selling its older H200 AI chips to certain customers in China—a clearance that does not extend to the more advanced Blackwell generation.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi