Tracking the flow of AI chips: U.S. authorities secretly embed tracking devices during server exports. | WPN World People News

As the U.S. Department of Commerce tightens its export restrictions on AI chips to China, lawmakers in both chambers of Congress have continued to push legislation aimed at tracking the location of AI chips to prevent them from being re-exported to China. Although the U.S. has eased restrictions on Nvidia’s H20 chips, Reuters reported that the U.S. government has quietly embedded tracking devices into certain high-risk AI chips to monitor their flow.

Citing two sources familiar with the matter, Reuters reported that the U.S. has long been installing tracking devices in shipments of advanced chips it suspects could be illegally diverted to China. The goal is to monitor specific shipments under investigation to determine whether they are re-exported to regions under U.S. export restrictions. This enables authorities to prosecute companies or individuals who profit from violating U.S. export controls. Such tracking devices have long been used by U.S. law enforcement agencies to track export-controlled items like aircraft parts, weapons, and narcotics.

Several insiders from the server product supply chain also revealed that they have seen U.S. authorities use trackers in shipments from companies such as Dell and Super Micro. These trackers were primarily used to trace Nvidia and AMD chips embedded in the products. However, there is no clear information on which agencies installed the devices or when. Some of the trackers are as large as a smartphone, while others are compact location beacons. Although installing trackers in shipment packages typically requires a court order, export enforcement personnel can sometimes proceed with only administrative approval.

Reuters noted that the Bureau of Industry and Security (BIS), which is responsible for export controls and enforcement under the U.S. Department of Commerce, typically participates in these investigations. The Department of Homeland Security’s Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) may also be involved. All three agencies declined to comment.

Among the vendors, Super Micro stated in a press release that the company strictly implements security policies designed to protect global operations, partners, and customers. Dell said it was unaware of the program, while Nvidia has not commented or responded.