Nvidia has confirmed the development of location verification technology for its artificial intelligence chips, which could prevent their smuggling into countries with export bans. This feature, recently demonstrated and yet-to-be-released, would be an optional software for customers.

The software allows tracking of a chip's computing performance through communication delays with Nvidia servers, providing location data similar to other internet-based services. Nvidia plans to make this open-source, enabling external security research.

This move aims to address U.S. concerns over AI chip smuggling into China, amidst criminal cases involving smuggling rings. However, China's cybersecurity regulator has questioned Nvidia about potential security backdoors amid U.S.-China geopolitical tensio

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