US Authorities Allegedly Placed Secret Tracking Devices in AI Chip Shipments to China

US Authorities Allegedly Placed Secret Tracking Devices in AI Chip Shipments to China

The US government has secretly embedded location-tracking devices in select shipments of advanced AI chips and servers to prevent their illegal diversion to China. This move is part of the country's efforts to enforce export restrictions imposed on China in 2022, aimed at curbing Beijing's military modernization and access to cutting-edge US technology.

The targeted shipments from manufacturers like Dell and Super Micro, containing Nvidia and AMD chips, have been equipped with trackers to monitor their movement and prevent smuggling to China. The devices are sometimes concealed inside packaging or even within servers, allowing law enforcement to trace goods restricted under US export laws and build cases against violators.

The Bureau of Industry and Security, Homeland Security Investigations, and the FBI are reportedly involved in this initiative to enforce export controls and prevent chip smuggling. The trackers aim to detect AI chips being diverted to destinations under US export restrictions, helping to build cases against individuals and companies profiting from violating these controls.

China has criticized US export curbs, slamming them as part of a campaign to suppress its rise. China's powerful cyberspace regulator even summoned Nvidia to express concerns over potential "backdoors" in its chips that could allow remote access or control.

The US government's move highlights the escalating tech war between the US and China, with both countries vying for dominance in the AI and semiconductor industries. The secret tracking devices are a significant step in enforcing export controls and preventing the misuse of advanced AI technology.

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