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6d ago

Bipartisan Legislation Targets AI Chip Smuggling with On-Chip Tracking Mandate

U.S. lawmakers push for location verification and boot restrictions to curb illegal Nvidia chip flows to China, tasking Commerce with new regulations within six months.

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Overview

  • Representative Bill Foster has introduced a bipartisan bill requiring on-chip tracking and boot prevention for unlicensed AI chips to counter smuggling to China.
  • The legislation, supported by both Democrats and Republicans, directs the U.S. Department of Commerce to establish regulations within six months.
  • Technical experts confirm that existing Nvidia chips already have the capability to support location tracking technology.
  • Reports of widespread smuggling and Chinese firms stockpiling $16 billion worth of Nvidia H20 chips before sanctions highlight the urgency of the issue.
  • Nvidia CEO Jensen Huang warns that without U.S. leadership, companies may turn to Chinese competitors like Huawei, threatening American dominance in AI innovation.