The United States is considering adding advanced location-tracking capabilities to artificial intelligence (AI) chips in a bid to prevent illegal exports to China—especially those involving products from companies like Nvidia.
Michael Kratsios, the president’s science advisor, confirmed that the US is looking to monitor the movement of its AI hardware. In an interview with Bloomberg, he stated that these tracking functions are part of a broader AI action plan aimed at protecting America's technological edge.
🔍 US Pressures Global Partners and Nvidia
Speaking at the APEC Ministerial Meeting on Digital Technology and AI in South Korea, Kratsios called on regional allies to adopt US technology standards. He also announced that the US will offer federal financial tools to support the export of AI technologies to approved countries.
“The next breakthrough in artificial intelligence will happen on American technology, and to fully benefit from it, you need American AI infrastructure in place,” Kratsios said.
China, however, has long accused the US of attempting to stifle its tech sector. Chinese authorities recently summoned Nvidia representatives to discuss the planned location-tracking functionality in the H20 chip line.
China Accused of Smuggling US Chips
Tensions escalated further when the US Department of Justice charged two Chinese nationals—Chuan Geng and Shiwei Yang—with smuggling advanced Nvidia H100 chips to Beijing.
According to the indictment, the pair used a California-based company, ALX Solutions, to arrange over 20 unauthorized shipments between October 2022 and July 2025 via Malaysia and Singapore. In one instance, they allegedly exported a $1 million shipment without the necessary license.
Investigators found incriminating evidence in the company’s office and on the suspects’ phones, including communications detailing the smuggling routes. If convicted, the two could face up to 20 years in prison under the Export Control Reform Act.
💬 Nvidia Denies Use of Surveillance Tech
Nvidia responded by stating it does not implement backdoors, tracking systems, or kill switches in its chips. The company warned that such practices would erode global trust in American technology and harm the entire industry.
🌐 US Pushes Its Own AI Regulatory Model
While the US works to promote its version of AI governance, Kratsios expressed support for global AI standards—but emphasized that the American model, based on innovation and openness, would be the most attractive to international partners.
It’s still unclear whether AI chips will officially include location tracking, but one thing is certain: the US wants to know where its technology ends up.
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