Nvidia builds location verification tech that could help fight chip smuggling – report

Nvidia (NVDA) has reportedly built location verification technology that could indicate which country its chips are operating in, a move that could help prevent its artificial intelligence chips from being smuggled into countries where their export is banned.

The feature, which Nvidia (NVDA) has demonstrated privately in recent months but has not yet released, would be a software option that customers could install, Reuters reported on Wednesday.

It would tap into what are known as the confidential computing capabilities of its graphics processing units ((GPUs)), the report said.

The software was built to allow customers to track a chip’s overall computing performance – a common practice among companies that buy fleets of processors for large data centers – and would use the time delay in communicating with servers run by Nvidia to give a sense of the chip’s location on par with what other internet-based services can provide, the report said, citing an Nvidia official.

“We’re in the process of implementing a new software service that empowers data center operators to monitor the health and inventory of their entire AI GPU fleet,” Nvidia said in a statement. “This customer-installed software agent leverages GPU telemetry to monitor fleet health, integrity and inventory.”

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