Nvidia Fights Back Against US Proposal to Install Location-Tracking Technology in AI Chips

Nvidia is reportedly resisting efforts by the White House to implement location-tracking technology in its advanced AI chips.

According to reports, discussions have taken place regarding the use of “software or physical changes” to enable chip-based tracking, aimed at preventing Nvidia’s most sophisticated AI chips from being illegally exported to China.

In a blog post titled “No Backdoors. No Kill Switches. No Spyware,” published on Tuesday, Nvidia subtly criticized the proposed location tracking system, suggesting it would require significant hardware alterations and pose numerous risks.

“Comparisons to smartphone features like ‘find my phone’ or ‘remote wipe’ as models for a GPU kill switch are misleading,” Nvidia stated. “Optional software features, controlled by the user, are not hardware backdoors.”

The company further argued that hardwiring a kill switch into a chip would create a permanent flaw beyond user control and could lead to disaster. “It’s like buying a car where the dealership keeps a remote control for the parking brake—just in case they decide you shouldn’t be driving,” Nvidia added.

The statement comes amidst concerns over the Chinese government’s interest in potential backdoors in Nvidia’s H20 GPU. Although Nvidia denies any security risks, a bill was proposed by a Republican lawmaker in May requiring the company to install location-tracking systems for high-end GPUs, including the RTX 5090, when sold outside the country.

The Trump administration’s interest in location tracking could potentially impact Nvidia’s business in China. Last month, the company was granted White House approval to sell a downgraded AI GPU, the H20, to the Chinese market, despite concerns it could bolster China’s AI ambitions.

However, the Commerce Department has stated that it will carefully consider any H20 license applications, taking into account both the benefits and costs of potential exports, as well as the views of experts across the U.S. government.

In a separate development, the Justice Department announced today the arrest of two Chinese nationals in California for allegedly exporting tens of millions of dollars’ worth of AI chips to China, although the specific chips were not specified in the agency’s press release.

As concerns over AI chip security and exports continue to escalate, Nvidia is urging caution. “For decades, policymakers have championed industry’s efforts to create secure, trustworthy hardware,” the company stated. “Governments have many tools to protect nations, consumers, and the economy. Deliberately weakening critical infrastructure should never be one of them.”