Nvidia (NASDAQ:NVDA) is back in the spotlight after a Reuters report said U.S. authorities have secretly placed location trackers in select AI server shipments to catch illegal diversions to China.
The devices apply only to shipments under investigation and are meant to help build cases against people and companies that break export rules. People in the supply chain say they have seen trackers on some Dell Technologies (NYSE:DELL) and Super Micro (NASDAQ:SMCI) servers carrying Nvidia and AMD (NASDAQ:AMD) chips, often tucked into packaging and sometimes inside the servers.
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Nvidia declined to comment. Super Micro said it does not disclose security practices. Dell said it is not aware of a government initiative to place trackers in its shipments. Authorities can use administrative approval or a judge's warrant, and companies may consent if they are not targets.
How often this happens is unclear. Two China based resellers said they now check diverted shipments for trackers. In a 2024 example, a Dell server shipment with Nvidia chips reportedly had large devices about the size of a smartphone and smaller discreet trackers, and a DOJ affidavit described instructions to inspect Quanta H200 servers.
covert tracking raises the enforcement bar and could slow gray market flows.ASDCexpect tighter export policing and watch for follow on cases and routing changes.
This article first appeared on GuruFocus.
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U.S. Reportedly Uses Trackers In AI Chip Shipments
Published 2 months ago
Aug 13, 2025 at 9:03 PM
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