Nvidia privately confirmed it could track chips to fight smuggling, even as industry publicly questioned feasibility
What happened
Nvidia representatives told U.S. Representative Bill Foster in private discussions that the company has the technical ability to track the locations of its AI chips, a capability relevant to the proposed Chip Security Act. This act, co-sponsored by Foster, seeks to introduce geolocation requirements for advanced AI chips to prevent illegal exports to China. While Nvidia’s industry association publicly questioned whether such tracking could be done, Nvidia’s own Fleet Intelligence tool, announced in December 2025, can already monitor chip locations across data centers. Nvidia has not publicly confirmed that this tool could be used specifically for anti-smuggling purposes and did not comment on Foster’s statements.
Key details
- Bill Foster is a co-sponsor of the Chip Security Act, which would require geotracking of advanced AI chips.
- The Semiconductor Industry Association, which includes Nvidia, opposed the bill in March 2026, calling tracking 'potentially infeasible.'
- Nvidia introduced the Fleet Intelligence tool in December 2025, which can monitor chip locations by country.
- The Chip Security Act is being considered for the Senate’s National Defense Authorization Act.
- The bill proposes several tracking methods, including a ping-based system that would signal a chip’s location when it comes online.
Why it matters
Companies that manufacture or use advanced AI chips could face new legal requirements to track and verify the physical location of these chips if the Chip Security Act becomes law. This would increase compliance responsibilities for chip makers and data center operators, especially those exporting to sensitive regions. The confirmation that tracking is technically feasible may influence lawmakers’ decisions and affect how firms prepare for potential new regulations.