Nvidia is reportedly testing tracking software as chip smuggling rumors swirl

Nvidia is allegedly testing software that can track the location of its AI chips as reports of its chips being smuggled into China are on the rise.

Nvidia has built location verification technology that would allow it to track which country a chip is located in, Reuters originally reported, citing anonymous sources. This software tracks computing performance but the delay in communication between servers also offers a sense of a chip’s location.

This software will be optional for customers to use and will be made available for Blackwell chips first, Reuters said.

Multiple reports have surfaced in the last few days that allege China’s DeepSeek AI models have been trained on smuggled Nvidia Blackwell chips. Nvidia responded to these reports by saying it hasn’t seen evidence of this type of smuggling.

“We haven’t seen any substantiation or received tips of ‘phantom datacenters’ constructed to deceive us and our OEM partners, then deconstructed, smuggled, and reconstructed somewhere else. While such smuggling seems farfetched, we pursue any tip we receive,” an Nvidia spokesperson told TechCrunch.

This news comes just days after Nvidia just got the greenlight from the U.S. Government to start selling its H200 AI chips to approved customers in China on Monday. That announcement only pertains to older H200 chips, and does not the company’s Blackwell chips.