U.S. Lawmakers Propose Geo-Tracking for AI Chips to Curb Unauthorized Access

U.S. inks bill to force geo-tracking tech for GPUs and servers -- high-end gaming GPUs also subject to tracking

Senator Tom Cotton's legislation seeks to "prevent advanced American chips from falling into the hands of adversaries like Communist China." Last week, a U.S. congressman announced a plan to introduce a bill that would mandate producers of high-performance AI processors to track them geographically in a bid to limit their usage by unauthorized foreign actors, such as China. Senator Tom Cotton of Arkansas then introduced a legislative measure later in the week. The bill covers hardware that goes way beyond just AI processors, and would give the Commerce Secretary power to verify the location of hardware, and put mandatory location controls on commercial companies. To make matters even more complicated, geo-tracking features would be required for high-performance graphics cards as well. The bill covers a wide range of products classified as 3A090, 4A090, 4A003.z, and 3A001.z export control classification numbers (ECCNs), so advanced processors for AI, AI servers (including rack-scale solutions), HPC servers, and general-purpose electronics of strategic concern due to potential military utility or dual-use risk. It should be noted that many high-end graphics cards (such as Nvidia's GeForce RTX 4090 and RTX 5090) are also classified as a 3A090 product, so it looks like such add-in-boards will also have to add geo-tracking capabilities. The first and central provision of the bill is the requirement for tracking technology to be embedded in any high-end processor module or device that falls under the U.S. export restrictions. This condition would take effect six months after the legislation is enacted, which will make the lives of companies like AMD, Intel, and Nvidia harder, as adding a feature to already developed products is a tough task. The mechanism must allow verification of a chip's or device's physical location, enabling the U.S. government to confirm whether it remains at the approved endpoint. Yet, exporters would be obliged to keep track of their products. The bill authorizes the Secretary of Commerce to verify the ownership and location of regulated processors and systems after export and maintain a centralized registry of current locations and end-users. Nvidia, as well as other exporters, would also be obligated to inform the Bureau of Industry and Security if there is evidence that a component has been redirected from its authorized destination. Additionally, any indications of tampering or manipulation must be reported. The bill, if supported by lawmakers, will mandate a one-year study to be conducted jointly by the Department of Commerce and the Department of Defense, which will identify additional protective measures that could be introduced in the future. Beyond the initial study, the same two departments are required to conduct yearly assessments for three consecutive years following the bill's enactment. These reviews must evaluate the most current advancements in security technologies applicable to products under export control. Based on these assessments, the departments may determine whether new requirements should be imposed. If the assessment concludes that additional mechanisms are appropriate, the Commerce Department must finalize rules within two years requiring covered chips and systems to incorporate these secondary features. A detailed implementation roadmap must also be submitted to the relevant congressional committees. All development and deployment of these mechanisms must preserve the confidentiality of sensitive commercial technologies. Finally, the legislation emphasizes confidentiality in all stages of developing and applying these new technical requirements. Any proposed safeguards or tracking features must be designed and implemented in a way that protects the proprietary information and trade secrets of American developers, such as AMD, Intel, and Nvidia. This condition ensures that while national security is strengthened, industrial competitiveness is not undermined. Also, the senator takes into account the lengthy development cycle of AI and HPC processors. While the goal is to tighten security (which is why chip developers will be obliged to add location tracking to their products six months after the bill's enactment), the structure of the bill deliberately stretches out decision-making and compliance timelines to accommodate industry realities. The call for gradual adoption of future safeguards acknowledges the slow pace of chip development cycles, meaning that full compliance could take years depending on what mechanisms are eventually required. Meanwhile, annual export control reform recommendations may introduce further changes or exceptions over time, adding to the complexity.

How Do You Keep Advanced US GPUs Out of China? How About Location Tracking?

Republican Sen. Tom Cotton proposes a location verification system that could also detect if a GPU had been tampered with to thwart any 'chip security mechanisms.' To stop China from obtaining cutting-edge chips, a US senator is floating the idea of requiring a location-tracking system for Nvidia GPUs, including the GeForce RTX 4090 and 5090. Sen. Tom Cotton (R-Ark.) says his Chips Security Act "will prevent American chips from falling into the hands of adversaries like Communist China." Cotton's goal is to allow international sales of advanced AI chips from companies like Nvidia and AMD without compromising national security. But those firms may not be in favor of implementing "chip security mechanisms" to help the US detect suspected "smuggling or exploitation" of advanced GPUs. The bill would require GPU makers to "implement location verification, using techniques that are feasible and appropriate" within 180 days of the legislation becoming law. The plan is to use the location tracking to tell if an high-end GPU is sold to other locations outside of the original export license. The same security mechanism could also detect if the GPU had been tampered with to "spoof, manipulate, mislead or circumvent location verification mechanisms or other chip security mechanisms," the bill says. Cotton's Chips Security Act would ensnare Nvidia's top-tier RTX 4090 and the RTX 5090 graphics cards for consumers. That's because the bill would require the chip security mechanism for products covered under US Export Control Classification Numbers 3A090 and 4A090. Those controls have applied to Nvidia's enterprise-grade GPUs for AI training, in addition to the RTX 4090, the company revealed in a 2023 SEC filing. In response, Nvidia created downgraded versions of the RTX 4090 and 5090 for the Chinese market to comply with US export controls. In the House, Rep. Bill Foster (D-Ill.) plans to introduce similar legislation, Reuters reports. Cotton's bill suggests the GPU-location tracking system would only apply to advanced chips meant for export outside the country. The senator introduced his legislation as the Trump administration scrapped Biden-era rules designed to curb AI chip exports to certain foreign markets, starting on May 15. "These new requirements would have stifled American innovation and saddled companies with burdensome new regulatory requirements," the US Commerce Department announced today. "The AI Diffusion Rule also would have undermined US diplomatic relations with dozens of countries by downgrading them to second-tier status." Instead, the Commerce Department plans on replacing the Biden-era rules with its own regulation in the future. In the meantime, the department says it's also issued guidance "warning the public about the potential consequences of allowing US AI chips to be used for training and interference of Chinese AI models."

Lawmaker wants to fight chip smuggling with tracking devices

Despite stiff export controls on the legitimate sale of AI accelerators to China, stemming the flow of gray market GPUs streaming into the Middle Kingdom remains a point of concern for American lawmakers. US Senator Tom Cotton (R-Ark) on Friday revealed his bright idea for stopping chip smugglers in their tracks: What if we just built tracking devices into the chips? That way we'd know right away if they ended up somewhere they shouldn't. That's the gist of the Chip Security Act [PDF] Cotton introduced, which require the Secretary of Commerce to mandate that any exported advanced chips or products containing them be equipped with a "location verification mechanism" within six months of the bill passing - which we emphasize has not happened yet. It would also require licensed exporters to report to the Bureau of Industry and Security if they learn that chips have been diverted, misused, or tampered with, including efforts to disable or spoof the tracking tech. "We must do better at maintaining and expanding our position in the global market, while safeguarding America's technological edge. With these enhanced security measures, we can continue to expand access to US technology without compromising our national security," said Cotton in a canned statement. The bill doesn't say exactly how these tracking devices would work. It defines the "chip security mechanism" as "software-, firmware-, or hardware-enabled security mechanism or a physical security mechanism." Initially, the bill gives the Secretary of Commerce flexibility in how location tracking requirements are implemented, so long as the selected methods are feasible and appropriate at the time of enactment. "Not later than 180 days after the date of the enactment of this Act, the Secretary shall require any covered integrated circuit product to be outfitted with chip security mechanisms that implement location verification, using techniques that are feasible and appropriate on such date of enactment," the bill reads. Long term, the bill would direct the Secretary of Commerce, in coordination with Defense, to explore potential chip security mechanisms within a year of passing, and periodically establish specific requirements chip designers would have to meet in the years that follow. As it currently stands, the proposed bill is worded so vaguely that strapping an Apple Air tag to a GPU's heat sink would theoretically satisfy the requirement. The challenge, of course, is implementing the location-tracking functionality in a way that can't easily be spoofed. Depending on how the reporting is done, and whether the rules apply to the chips themselves or the assembly as a whole (An HGX or OAM board for example), it's possible that existing hardware security tech could be enough to satisfy the requirement. High-end semiconductors are often equipped with unique identifiers or digital signatures. One can imagine a scenario similar to the end of the Cold War, where auditors would occasionally swing by former Soviet states to check that they're actually decommissioning the nuclear weapons they'd promised. However, in this case, auditors would go around to datacenters checking that the GPUs' cryptographic signatures match the ones on file. The Register reached out to AMD and Intel for comment regarding the proposed rules, but had not heard back at the time of writing. Nvidia declined to comment. While Cotton's bill does seek to include tracking technology in GPUs, it stops short of recommending the inclusion of backdoors or kill switches, as some have previously suggested. Such a kill switch would enable the US government not just to punish those caught circumventing export controls, but render any chips they might have smuggled useless. The proposed bill comes just days after the US Commerce Department said it would rescind a controversial Biden-era rule of AI exports intended to crack down on GPU smuggling to China and other nations of concern. ®

GPU tracking bill gains bipartisan support in US House

Every shipment you make, every FLOP you generate, Uncle Sam will be watching you Proposed legislation gaining steam in Congress this week would require high-end GPUs and AI chips to include location-tracking safeguards to ensure US-designed components don't end up in nations against Uncle Sam's wishes, with exporters on the hook for compliance. On Thursday, a group of bipartisan legislators introduced [PDF] the Chip Security Act in the House of Representatives, following a similar bill introduced in the Senate last week. If passed, the proposed bill would require that, within 180 days of enactment, certain advanced chips and systems as defined by US export control codes be equipped with some kind of "location verification mechanism," which would help detect and report diversion or misuse after export. Exporters would be responsible for reporting violations to the US Bureau of Industry and Security (BIS) in the event chips are diverted, misused, or tampered with. In other words, if (say) Nvidia accelerators were sold to Singapore and suddenly showed up in mainland China, or the tracking tech was somehow disabled, the GPU giant would need to flag it. Proponents of the bill, including Congressman Bill Huizenga (R-MI) and Bill Foster (D-IL), argue the measure is needed to stop high-end GPUs from being rerouted to the Middle Kingdom through smuggling networks and shell companies. "With advanced AI chips being smuggled into China and posing a national security risk, Congress must act," Foster said in a canned statement. "In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors," Huizenga added. The House bill comes a week after Senator Tom Cotton (R-AR) introduced a similar bill in the Senate. Neither bill specifies exactly how these tracking mechanisms would work, only that, within six months of enactment, the Commerce Secretary must require covered AI chips to include location verification capabilities using feasible and appropriate techniques. Longer-term security requirements would be evaluated over the following year. AMD and Nvidia declined to comment on the proposed rules. Intel had not responded by the time of publication. The House bill comes just days after the Trump administration scrapped Biden-era diffusion rules, which sought to crack down on the smuggling of GPUs and other high-end chips into China and other nations of concern by capping exports of compute to most nations outside the US and a select few allies. The White House has promised to introduce new export restrictions, but apart from a few vague promises to safeguard US national security, details remain razor thin. ®

US senator introduces bill calling for location-tracking on AI chips to limit China access

May 9 (Reuters) - A U.S. senator introduced a bill on Friday that would direct the Commerce Department to require location verification mechanisms for export-controlled AI chips, in an effort to curb China's access to advanced semiconductor technology. Called the "Chip Security Act," the bill calls for AI chips under export regulations, and products containing those chips, to be fitted with location-tracking systems to help detect diversion, smuggling or other unauthorized use of the product. "With these enhanced security measures, we can continue to expand access to U.S. technology without compromising our national security," Republican Senator Tom Cotton of Arkansas said. The bill also calls for companies exporting the AI chips to report to the Bureau of Industry and Security if their products have been diverted away from their intended location or subject to tampering attempts. The move comes days after U.S. President Donald Trump said he would rescind and modify a Biden-era rule that curbed the export of sophisticated AI chips with the goal of protecting U.S. leadership in AI and blocking China's access. U.S. Representative Bill Foster, a Democrat from Illinois, also plans to introduce a bill on similar lines in the coming weeks, Reuters reported on Monday. Restricting China's access to AI technology that could enhance its military capabilities has been a key focus for U.S. lawmakers and reports of widespread smuggling of Nvidia's (NVDA.O), opens new tab chips into China in violation of export control laws have further amplified the concerns. Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

U.S. lawmakers introduce bill to address AI chip smuggling

SAN FRANCISCO, May 15 (Reuters) - A bipartisan group of eight U.S. lawmakers introduced a bill on Thursday that would require makers of artificial intelligence chips such as Nvidia to include technology to verify the location of their chips before exporting them. The Chip Security Act introduced in the U.S. House of Representatives aims to address reports of U.S. export-controlled AI chips being smuggled into China. U.S. officials across presidential administrations have sought to clamp down on their export to China, but Reuters and other news organizations have documented how some of those chips have continued to flow. "In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors," Rep. Bill Huizenga, a Michigan Republican who co-led the House bill, said in a statement. Sen. Tom Cotton, an Arkansas Republican, introduced a similar bill in the U.S. Senate last week. The House bill was spearheaded by Rep. Bill Foster, an Illinois Democrat, who was a physicist before becoming a legislator and designed several of his own chips during his scientific career. "I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands," Foster said in a statement. The House bill comes after President Donald Trump's administration rescinded a rule enacted by predecessor President Joe Biden that would have regulated the flow of advanced AI chips around the world. The Trump administration has not yet announced a replacement rule. But Trump this week toured the Middle East, where he announced a spate of deals to send AI chips to countries in the Middle East, despite growing opposition from some inside the U.S. government. In addition to Foster and Huizenga, also co-leading the House bill are House Select Committee on China Chairman John Moolenaar, a Michigan Republican, and Ranking Member Raja Krishnamoorthi, an Illinois Democrat. Reps. Ted Lieu, California Democrat; Rick Crawford, an Arkansas Republican who chairs the House Intelligence Committee; Josh Gottheimer, a New Jersey Democrat; and Darin LaHood, an Illinois Republican were co-sponsors. Reporting by Stephen Nellis in San Francisco, Editing by Louise Heavens Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:United States

New US bill targets AI chip smuggling with built-in tracking systems

The United States has intensified its tech crackdown on China with a new legislative push that aims to tighten control over where advanced AI chips end up. On May 9, Senator Tom Cotton (R-Arkansas) introduced the Chip Security Act, a bill designed to prevent adversaries like China from accessing American semiconductor technology through unauthorized diversions or tampering. The move adds a new front in the long-simmering U.S.-China tech war, which has seen sweeping export bans, corporate compliance overhauls, and retaliatory restrictions as both nations vie for supremacy in artificial intelligence and chipmaking.

US seeks to thwart smuggling of Nvidia GPUs with location tracking

A proposed US law would force location tracking on export-controlled chips, including Nvidia's high-end GPUs. The United States has reportedly been investigating reports that Nvidia GPUs have landed illegally in China to be used by Chinese LLMs like DeepSeek, and one US lawmaker will be introducing a new bill that aims to track the locations of AI chips -- like the ones made by Nvidia -- after they're sold, reports Reuters and Neowin. The smuggling of CPUs and GPUs is nothing new. PC components have often been smuggled across the ocean to countries like China and other East Asian countries for years. But with the rising power of AI and the implications of AI on technological prowess, it's not unusual that the US government wouldn't want that tech falling into rival hands. The proposed legislation would oblige US authorities to develop regulations for location verification of AI chips. This would purportedly prevent cutting-edge chips and processors from being smuggled into other countries and being put into operation there without proper export licenses -- a kind of kill-switch function. Former President Biden's administration and the current Trump administration have gradually tightened export controls for technologies such as GPUs from Nvidia. Even so, around $17 billion (or 13 percent of Nvidia's total turnover) was generated on the Chinese market. According to Reuters, Nvidia claims it can't continue to pursue its chips after sales are made, bu the US government disagrees. According to experts, the technology to track these computer chips is readily available, and the necessary functions are already integrated into Nvidia chips. And with competitors like Google already use such location-tracking technology for their own AI chips in data centers as a security measure, it's hard to believe Nvidia can't do the same. The proposed bill still needs to be presented and voted on, but what would happen if it were passed? Here's a quick overview. Within six months of the law coming into force, a mechanism to verify and track the whereabouts of highly developed and export-controlled chips (or products containing them) will become mandatory. When products are diverted from their intended destinations or have been the subject of tampering attempts, every incident must be reported. In coordination with the Department of Defense, potential security mechanisms for AI chips are to be investigated next year. In the coming years, these are to be defined and then implemented following further evaluation. This should also make export controls more flexible in order to simplify deliveries to other countries.

Congress wants geotracking tech in high-end GPUs to keep them out of China's clutches

The proposed legislation could enforce tracking within 6 months New proposed legislation in Congress could see the US integrate geotracking capabilities within high-end GPUs, marking the introduction of more dynamic ways to monitor exports rather than just blanket bans. Bipartisan lawmakers introduced the Chip Security Act to prevent high-end GPUs and AI chips from reaching countries of concern, such as China. Currently in review, if passed, exporters would need to comply with new tracking rules while also reporting violations, such as disabled tracking, back to the US Bureau of Industry and Security (BIS). "Not later than 180 days after the date of the enactment of this Act, the Secretary shall require any covered integrated circuit product to be outfitted with chip security mechanisms that implement location verification, using techniques that are feasible and appropriate on such date of enactment, before it is exported, reexported, or in-country transferred to or in a foreign country," the bill reads. Lawmakers cite national security risks and concerns over smuggling networks and shell companies exporting US chips to China illegitimately as key drivers for the tracking proposals. "I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands. With advanced AI chips being smuggled into China and posing a national security risk, Congress must act," Congressman Bill Foster (D-IL) added. Location sharing should be enabled and supported before chips are exported if the bill gets passed, with the Secretary of Commerce to be made responsible for assessing second-level security mechanisms to prevent the misuse or diversion of chips covered under the proposed rules. The bill follows the Trump administration's removal of Biden-era chip export diffusion rules, with the White House pledging renewed export restrictions that don't negatively impact allies.

US senator announces a bill requiring geotracking in high-end GPUs to prevent the Chinese government from wielding the ruinous power of your Nvidia RTX 4090

The US can't afford to lose its advantage in making games look a little funny with DLSS. Last week, we reported on Democrat congressman Bill Foster's plans to introduce a bill that requires manufacturers of AI processors, like those in Nvidia GPUs, to implement tech that allows the US government to track where they end up. Well, it looks like the Senate didn't want to be outdone, because less than 24 hours later Senator Tom Cotton of Arkansas announced the Chip Security Act, his own bill requiring AI hardware manufacturers to allow for geotracking of those all-so-important chips (via Tom'sHardware). The press release announcing Cotton's bill, which says the legislation will keep American hardware from "falling into the hands of adversaries like Communist China," uses the word "chips" nine times. That's how you know it's serious. "We must do better at maintaining and expanding our position in the global market, while safeguarding America's technological edge," Cotton said in the press release. "With these enhanced security measures, we can continue to expand access to US technology without compromising our national security." The Chip Security Act would direct the Secretary of Commerce to "require a location verification mechanism on export-controlled advanced chips or products with export-controlled advanced chips," with exporters needing to inform the Bureau of Industry and Security if their hardware is tampered with or diverted somewhere it shouldn't be. Specifically, the text of the bill would require those geotracking mechanisms on products classified under Export Control Classification Number 3A090, 3A001.z, 4A090, 4A003.z, or any "successor or substantially similar numbers." High-end Nvidia GPUs like the RTX 4090 have been classified as ECCN 3A090 and 4A090 products since 2023, while US export control orders have been halting Nvidia GPU sales to China since 2022. The bill also includes provisions for coordinating with the Department of Defense to study potential and newly-developed security mechanisms "and determine if any new mechanisms should be required." Nvidia has said publicly that it isn't capable of tracking its hardware after it's been sold, and has denied concerns of widespread chip smuggling. It's worth noting, however, that TSMC -- the main producer of Nvidia hardware -- was facing a potential $1 billion fine just last month after one of its chips was discovered in a Huawei processor. I understand the justification about protecting America's dominance in AI tech, but I'll admit that the idea of my GPU being tracked as a potential national security threat feels a little silly. If their experience ends up anything like mine, anyone with a smuggled 4090 will probably just spend most of their time trying to decide whether or not DLSS is making everything look like it's coated in a sheen of cyber-vaseline.

US Senator Introduces Bill Calling for Location-Tracking on AI Chips to Limit China Access

(Reuters) -A U.S. senator introduced a bill on Friday that would direct the Commerce Department to require location verification mechanisms for export-controlled AI chips, in an effort to curb China's access to advanced semiconductor technology. Called the "Chip Security Act," the bill calls for AI chips under export regulations, and products containing those chips, to be fitted with location-tracking systems to help detect diversion, smuggling or other unauthorized use of the product. "With these enhanced security measures, we can continue to expand access to U.S. technology without compromising our national security," Republican Senator Tom Cotton of Arkansas said. The bill also calls for companies exporting the AI chips to report to the Bureau of Industry and Security if their products have been diverted away from their intended location or subject to tampering attempts. The move comes days after U.S. President Donald Trump said he would rescind and modify a Biden-era rule that curbed the export of sophisticated AI chips with the goal of protecting U.S. leadership in AI and blocking China's access. U.S. Representative Bill Foster, a Democrat from Illinois, also plans to introduce a bill on similar lines in the coming weeks, Reuters reported on Monday. Restricting China's access to AI technology that could enhance its military capabilities has been a key focus for U.S. lawmakers and reports of widespread smuggling of Nvidia's chips into China in violation of export control laws have further amplified the concerns. (Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta)

Cotton unveils legislation requiring location verification for advanced AI chip exports

Sen. Tom Cotton (R-Ark.) introduced a bill Friday that would require chip exports to have location-tracking systems to prevent American technology from reaching adversaries. The bill, titled the Chip Security Act, would direct the Commerce Department to require a "location verification mechanism" on artificial intelligence chips subject to export controls. Chip exporters would then be required to report to the Commerce Department's Bureau of Industry and Security (BIS) if their products were diverted from the intended destination or tampered with. "Expanding access to advanced technology can't come at the cost of our national security," Cotton wrote on X Friday. "My Chips Security Act will prevent American chips from falling into the hands of adversaries like Communist China." Earlier this week, the Trump administration confirmed it is planning to repeal the Biden administration's AI diffusion rule, which was announced in January in the final days of former President Biden's term. The rule placed caps on chip sales to most countries around the world, except for 18 U.S. allies and partners, and intended to curb foreign competition in the tech development space. In a statement Wednesday, the BIS called the rule "overly complex, overly bureaucratic," warning it would stifle American innovation and dominance. David Sacks, the White House AI and crypto czar, later said the rule alienated key U.S. allies and overreached on export control authority. Several other technology companies from Microsoft to Nvidia urged Trump to loosen the rules in recent months. The issue raises new challenges for the administration as they grapple with curbing competition from China and ensuring the success of American exporters. The Trump administration last month rolled out new export licensing requirements for certain chips, including Nvidia's H20 and AMD's MI308 models. Nvidia said the rules will cost the company $5.5 billion and Reuters reported on Friday that the chip manufacturer is planning to release a modified H20 AI chip in the wake of the new rules.

Bipartisan House lawmakers propose bill to 'stop smuggling' of AI chips

A bipartisan group of House lawmakers introduced a bill Thursday aimed at preventing the smuggling of artificial intelligence (AI) chips to unauthorized locations. The bill comes amid a broader effort in Washington to curb competition with China and prevent U.S.-made tech from ending up in the hands of adversaries. The legislation, titled the Chips Security Act, would require companies to ensure the location-verification abilities of their high-end AI chips and to report when a product has been diverted or changed location. It follows recent reports of increased smuggling of chips, including those made by Nvidia, into China despite tight export controls. It also would mandate that the Commerce secretary evaluate security measures to prevent the misuse or diversion of chips and give the secretary enforcement capabilities. The bill was introduced by Reps. Bill Foster (D-Ill.) and Bill Huizenga (R-Mich.), House Select Committee on China Chair John Moolenaar (R-Mich.) and ranking member Raja Krishnamoorthi (D-Ill.) "As Congress' chip designer, AI programmer, and PhD physicist, I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands," Foster said Thursday. It comes nearly a week after Sen. Tom Cotton (R-Ark.) unveiled similar legislation in the upper chamber. Earlier this week, the Commerce Department officially rescinded the former Biden administration's AI diffusion rule that would have placed caps on chip sales to most countries around the world. The Bureau of Industry and Security said the Biden-era rule, which was supposed to go into effect Thursday, would "have stifled American innovation and saddled companies with burdensome new regulatory requirements." The BIS said it plans to issue a replacement rule in the future. Several technology companies including Microsoft and Nvida urged Trump to loosen the rule once he was back in office. Concerns over China's AI development ramped up earlier this year after the Chinese AI company DeepSeek released a high-performing model for a fraction of the cost of American-made models.

U.S. Lawmakers Introduce Bill to Address AI Chip Smuggling

SAN FRANCISCO (Reuters) -A bipartisan group of eight U.S. lawmakers introduced a bill on Thursday that would require makers of artificial intelligence chips such as Nvidia to include technology to verify the location of their chips before exporting them. The Chip Security Act introduced in the U.S. House of Representatives aims to address reports of U.S. export-controlled AI chips being smuggled into China. U.S. officials across presidential administrations have sought to clamp down on their export to China, but Reuters and other news organizations have documented how some of those chips have continued to flow. "In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors," Rep. Bill Huizenga, a Michigan Republican who co-led the House bill, said in a statement. Sen. Tom Cotton, an Arkansas Republican, introduced a similar bill in the U.S. Senate last week. The House bill was spearheaded by Rep. Bill Foster, an Illinois Democrat, who was a physicist before becoming a legislator and designed several of his own chips during his scientific career. "I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands," Foster said in a statement. The House bill comes after President Donald Trump's administration rescinded a rule enacted by predecessor President Joe Biden that would have regulated the flow of advanced AI chips around the world. The Trump administration has not yet announced a replacement rule. But Trump this week toured the Middle East, where he announced a spate of deals to send AI chips to countries in the Middle East, despite growing opposition from some inside the U.S. government. In addition to Foster and Huizenga, also co-leading the House bill are House Select Committee on China Chairman John Moolenaar, a Michigan Republican, and Ranking Member Raja Krishnamoorthi, an Illinois Democrat. Reps. Ted Lieu, California Democrat; Rick Crawford, an Arkansas Republican who chairs the House Intelligence Committee; Josh Gottheimer, a New Jersey Democrat; and Darin LaHood, an Illinois Republican were co-sponsors. (Reporting by Stephen Nellis in San Francisco, Editing by Louise Heavens)

US senator introduces bill calling for location-tracking on AI chips to limit China access

The proposed "Chip Security Act" would require AI chips under US export controls to include location-tracking to prevent unauthorised use, particularly by China. Introduced by Senator Tom Cotton, the bill aims to enhance national security and detect smuggling. It follows ongoing efforts to limit China's access to advanced semiconductor technology amid rising concerns over diversion and misuse.A US senator introduced a bill on Friday that would direct the Commerce Department to require location verification mechanisms for export-controlled AI chips, in an effort to curb China's access to advanced semiconductor technology. Called the "Chip Security Act," the bill calls for AI chips under export regulations, and products containing those chips, to be fitted with location-tracking systems to help detect diversion, smuggling or other unauthorized use of the product. "With these enhanced security measures, we can continue to expand access to U.S. technology without compromising our national security," Republican Senator Tom Cotton of Arkansas said. The bill also calls for companies exporting the AI chips to report to the Bureau of Industry and Security if their products have been diverted away from their intended location or subject to tampering attempts. The move comes days after U.S. President Donald Trump said he would rescind and modify a Biden-era rule that curbed the export of sophisticated AI chips with the goal of protecting US leadership in AI and blocking China's access. US Representative Bill Foster, a Democrat from Illinois, also plans to introduce a bill on similar lines in the coming weeks, Reuters reported on Monday. Restricting China's access to AI technology that could enhance its military capabilities has been a key focus for US lawmakers and reports of widespread smuggling of Nvidia's chips into China in violation of export control laws have further amplified the concerns.

US lawmakers introduce bill to address AI chip smuggling

A bipartisan US bill seeks to require AI chipmakers like Nvidia to add location verification tech before exports, aiming to prevent chips from reaching China illegally. Lawmakers stress the need to safeguard US technological advantages amid concerns of export control circumvention and recent controversial AI chip deals abroad.A bipartisan group of eight US lawmakers introduced a bill on Thursday that would require makers of artificial intelligence chips such as Nvidia to include technology to verify the location of their chips before exporting them. The Chip Security Act introduced in the US House of Representatives aims to address reports of US export-controlled AI chips being smuggled into China. US officials across presidential administrations have sought to clamp down on their export to China, but Reuters and other news organisations have documented how some of those chips have continued to flow. "In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors," Rep. Bill Huizenga, a Michigan Republican who co-led the House bill, said in a statement. Sen. Tom Cotton, an Arkansas Republican, introduced a similar bill in the US Senate last week. The House bill was spearheaded by Rep. Bill Foster, an Illinois Democrat, who was a physicist before becoming a legislator and designed several of his own chips during his scientific career. "I know that we have the technical tools to prevent powerful AI technology from getting into the wrong hands," Foster said in a statement. The House bill comes after President Donald Trump's administration rescinded a rule enacted by predecessor President Joe Biden that would have regulated the flow of advanced AI chips around the world. The Trump administration has not yet announced a replacement rule. But Trump this week toured the Middle East, where he announced a spate of deals to send AI chips to countries in the Middle East, despite growing opposition from some inside the US government. In addition to Foster and Huizenga, also co-leading the House bill are House Select Committee on China Chairman John Moolenaar, a Michigan Republican, and Ranking Member Raja Krishnamoorthi, an Illinois Democrat. Reps. Ted Lieu, California Democrat; Rick Crawford, an Arkansas Republican who chairs the House Intelligence Committee; Josh Gottheimer, a New Jersey Democrat; and Darin LaHood, an Illinois Republican were co-sponsors.

U.S. Lawmakers Introduce Chip Security Act to Prevent NVIDIA's AI Chips From Reaching China; Proposes Chip Tracking & Kill Switch As Possible Measures

The US is getting serious about NVIDIA's high-end AI chips ending up in China, as lawmakers have now taken the matter into their own hands by proposing a new "security" act. While the US administration has tried desperate measures to prevent NVIDIA's AI chips from ending up in China, their efforts haven't worked out quite well, as Chinese entities have found many trade loopholes in order to access the chips. With the growing influence of AI throughout the world, the US has taken the technology as a matter of "national security", which is why various lawmakers have now brought a new bill to the U.S. House of Representatives, called the "Chip Security Act", that will force firms like NVIDIA to track the location of the end-users of its chips. In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors. - Rep. Bill Huizenga via Reuters The bill was initially driven by Rep. Bill Foster, who previously was a physicist and claims that he is aware of modifications NVIDIA could make to ensure that its chips stay away from China. Part of the Chips Security Act includes putting a "location tracking" mechanism in Team Green's AI accelerators, allowing the firm to analyze its end users and where its chips are being sold globally. He also claimed that NVIDIA would integrate a "kill switch" in its AI accelerators, so the firm could make those chips useless if they end up in China. China has chiefly accessed NVIDIA's high-end AI chips by sourcing them through countries like Malaysia, Singapore, and the Philippines. The US did warn such nations not to aid Chinese companies in getting access to AI servers, but it seemed like measures taken by the US adminstration didn't work out at all, since China is still known to have access to NVIDIA's chips like the H100s. Along with this, and with President Trump's growing relations with the Middle East, there are concerns about indirect technology transfer. It would be interesting to see whether the Chip Security Act becomes official US law, and the more intriguing part would be what NVIDIA would need to implement in order to comply with it.