A U.S. lawmaker is planning to introduce legislation in the near future aimed at verifying the location of artificial intelligence chips post-sale, especially those manufactured by Nvidia. In a bipartisan effort, the initiative seeks to tackle the issue of widespread smuggling of Nvidia chips into China, breaching U.S. export control laws.
According to various independent technical experts interviewed by Reuters, Nvidia's chips are crucial components for developing AI systems like chatbots, image generators, and specialized applications aiding in creating biological weapons. Representative Bill Foster, who has a scientific background in designing computer chips, intends to propose a bill directing U.S. regulators to establish rules for two primary areas.
Quoting Foster, "There are already credible reports - some of which have not been publicly disclosed - of chip smuggling occurring on a large scale." One aspect Foster aims to address is verifying the location of chips to ensure they are where approved to be under export control licenses. The second focus is preventing unauthorized chips from functioning if they lack proper export licensing.
The proposed legislation would necessitate technology companies such as Nvidia to integrate location-tracking mechanisms into their AI chips. The technology would involve chips communicating with a secure server to determine their location based on signal travel time – leveraging the speed of light. This would provide a general, country-level location for the chips.
Although Republicans have shown support for the initiative, specific legislative endorsements are pending the introduction of the bill. As per Foster, the U.S. Department of Commerce would be given six months to establish regulations mandating the implementation of this technology. Representative Raja Krishnamoorthi, also backing Foster's bill, emphasized the need for innovative solutions to curb chip smuggling.
The urgency to combat chip smuggling heightened with the emergence of China's DeepSeek AI systems, predominantly powered by Nvidia chips prohibited for sale to China. The technology to ensure chip location post-sale is available, and discussions are ongoing with chip providers for its practical implementation. Both President Trump and President Biden have intensified restrictions on Nvidia chip exports to China due to ongoing smuggling concerns.
Illegal activities involving Nvidia chips have surfaced in cases like those prosecuted in Singapore, underscoring the pressing need for effective tracking mechanisms. While the specifics of the legislation are still taking shape, the aim is to curb unauthorized export of critical AI components and boost security measures.
