The U.S. government has secretly embedded tracking devices in select shipments of advanced AI chips to help prevent illegal diversions to China, according to sources familiar with the operation. These trackers, hidden in servers from manufacturers such as Dell and Super Micro that use chips from Nvidia and AMD, are part of a broader strategy to enforce U.S. chip export restrictions aimed at curbing China’s military advancements.

This tactic highlights the escalating tensions between the U.S. and China over technology control and comes amid some attempts by the Trump administration to ease certain trade restrictions. Law enforcement agencies such as the Department of Commerce, FBI, and Homeland Security are reportedly involved, although they have largely declined to comment. Some sources in the chip resale market in China admit to being aware of and watching for these trackers.