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3w ago

U.S. Lawmakers Advance Bill to Combat AI Chip Smuggling with Tracking and Kill-Switch Measures

Representative Bill Foster's bipartisan proposal directs the Commerce Department to mandate on-chip location verification and boot prevention to enforce export controls on AI technology.

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Overview

  • The proposed legislation, led by Rep. Bill Foster, aims to require advanced AI chips, like those made by Nvidia, to include location-tracking and boot-locking features to prevent unauthorized use or export violations.
  • The bill responds to reports of widespread smuggling of restricted Nvidia chips into China, including their use by Chinese AI startup DeepSeek, which has challenged U.S. AI leadership.
  • Technical experts confirm that location-tracking technology is feasible and already partially implemented in some AI systems, though the boot-locking feature presents greater complexity.
  • Nvidia CEO Jensen Huang has expressed concerns about the economic impact of losing access to China's $50 billion AI market, calling it a potential 'tremendous loss' for the company and U.S. technology leadership.
  • The AI Diffusion rule, imposing stricter export controls on advanced AI chips, is set to take effect on May 15, with the Trump administration considering revisions to simplify or tighten the regulations.