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Nvidia Tests Location Checks for Blackwell Chips as Smuggling Allegations Surface

The company says it has no verified evidence of the alleged DeepSeek smuggling.

Overview

  • Reuters reported that Nvidia is testing optional location-verification software that can infer a chip’s country based on performance and network delay data.
  • The tool is expected to debut on Blackwell-class GPUs and would rely on customer opt-in, according to the report.
  • Nvidia said it has not seen substantiation or received tips of elaborate 'phantom data centers' designed to hide smuggled hardware.
  • Allegations from The Information claim China’s DeepSeek trained models on restricted Blackwell GPUs obtained through illicit channels.
  • U.S. regulators recently cleared limited sales of older H200 chips to approved buyers in China, while newer Blackwell parts remain restricted and carry strong black-market incentives, with earlier reports putting lower-end prices around $6,500–$8,000.