SAN FRANCISCO – Nvidia has developed an innovative location verification feature for its AI graphics processing units (GPUs) that could pinpoint a chip’s operating country, sources familiar with the matter told Reuters, offering a potent weapon against smuggling to nations like China under U.S. export restrictions.
The unreleased software, demonstrated privately in recent months, would function as an optional update, leveraging the confidential computing capabilities built into Nvidia’s GPUs. It uses telemetry data—such as communication delays between the chip and Nvidia’s servers—to estimate location with accuracy comparable to internet-based geolocation services. This dual-purpose tool also enables data center operators to monitor fleet health, performance, and inventory in real time.
Debuting first on Nvidia’s cutting-edge Blackwell chips, which boast enhanced “attestation” security for verifying chip integrity, the feature surpasses protections in prior Hopper and Ampere generations. Nvidia is exploring retrofits for older models, according to company officials.
The move directly responds to bipartisan U.S. pressure: The White House and lawmakers have urged chipmakers to implement such safeguards amid escalating geopolitical tensions. The Department of Justice has prosecuted China-linked rings attempting to smuggle over $160 million in Nvidia hardware, highlighting enforcement gaps in Biden-era export controls aimed at curbing Beijing’s AI ambitions.
Nvidia confirmed: “We’re implementing a new software service that empowers data center operators to monitor the health and inventory of their entire AI GPU fleet.” While experts affirm it can operate without compromising security—via secure enclaves—China’s cybersecurity watchdog has summoned Nvidia over fears of U.S. “backdoors,” which the firm vehemently denies.
If adopted widely, the technology could set a new standard for AI hardware compliance, potentially reshaping global trade dynamics. However, mandatory rollout remains uncertain, balancing U.S. national security with Nvidia’s vast international market. Shares in NVDA.O rose 1.2% in after-hours trading on the news.