US Secretly Tracks AI Chip Shipments to Prevent China Diversion
U.S. authorities have reportedly begun secretly embedding GPS tracking devices within shipments of advanced artificial intelligence (AI) chips, a measure designed to intercept any attempts to divert critical hardware to nations like China, which are subject to stringent U.S. export controls. While the government has yet to officially confirm this clandestine program, a recent Reuters report sheds light on the initiative.
Sources familiar with the matter indicate that federal agencies have commenced placing these tracking devices in select consignments of high-end AI chips. The primary objective is to identify and prevent the illicit rerouting of sensitive technology to countries where U.S. restrictions apply. Industry insiders cited in the report suggest that shipments originating from major technology firms such as Dell and Super Micro, particularly those equipped with powerful Nvidia and AMD chips, have been targeted. The trackers themselves are reportedly concealed in various ways, sometimes hidden within the packaging materials or even directly integrated into the server hardware itself.
The oversight of this program is reportedly managed by the Bureau of Industry and Security, a division of the U.S. Department of Commerce. Additionally, both Homeland Security Investigations and the Federal Bureau of Investigation (FBI) are believed to be involved in the covert operation. The methods of deployment vary; in some instances, trackers are installed with the explicit approval of a court order or through cooperation with unsuspecting third-party companies. However, in other cases, the tracking devices are reportedly embedded without the knowledge or consent of the companies whose products are being monitored. This has prompted concerns among Chinese resellers, who are now said to be actively inspecting incoming shipments for any signs of these hidden tracking devices.
When questioned about the program, Dell stated its unawareness of any such U.S. government initiative. Super Micro, while emphasizing its existing security protocols, declined to comment specifically on the allegations. Nvidia offered no comment, and AMD did not respond to requests for information. China’s foreign ministry, for its part, asserted that it was not cognizant of the allegations.
The reported tracking initiative underscores the U.S. government’s escalating efforts to curb the flow of advanced AI technology to strategic rivals. This concern was recently highlighted by a high-profile case involving two Chinese nationals who were indicted for allegedly orchestrating the illegal export of Nvidia AI chips, valued at tens of millions of dollars, to China. Court documents from this case revealed that a co-conspirator had explicitly instructed an accomplice to meticulously check a particular shipment for any embedded trackers, indicating an awareness of such monitoring possibilities. The hardware in question, sourced from Quanta, was confirmed to contain Nvidia chips.
Looking ahead, the U.S. government is reportedly weighing a significant policy shift: potentially mandating the inclusion of tracking technology in all exported advanced chips. This proposed measure aims to create a more robust and systemic defense against the diversion of sensitive technological assets to countries like China and Russia, further tightening the global supply chain for critical AI components.