AI chip shipments from US had secret location trackers: Report

A recent report reveals that some AI chip shipments from the United States to other countries were covertly equipped with location tracking devices. These trackers were reportedly placed in shipments deemed at high risk of illegal diversion to China, aiming to enforce US export restrictions on advanced AI chips. The devices were typically hidden within server packaging from manufacturers like Dell and Super Micro, which include chips from Nvidia and AMD. While the exact parties responsible for installing the trackers and the precise points along the shipping routes remain unclear, US agencies such as the Department of Commerce’s Bureau of Industry and Security, Homeland Security Investigations, and the FBI are suspected to be involved. This tactic aligns with longstanding US law enforcement practices to monitor shipments and prevent unauthorized technology transfers to restricted countries. The use of these trackers comes amid ongoing US efforts to limit China’s access to cutting-edge AI technology, which is crucial for innovations in electric vehicles, semiconductors, and aerospace. Since 2022, the US has restricted sales of advanced chips from Nvidia and