The U.S. is weighing a new approach to protect its lead in artificial intelligence: embedding location-tracking technology directly into high-end chips. The move comes as years of export controls—and recent escalations—have failed to fully stop smuggling into China, leaving policymakers looking for solutions that go beyond paperwork. This involves leading-edge AI GPUs such as Nvidia's H20, which are otherwise already permitted to be sold in China following lengthy bans.
Talking to Bloomberg, Michael Kratsios, Director of the White House Office of Science and Technology Policy and one of the architects of the administration’s AI action plan, confirmed that both software-based and physical tracking solutions are being discussed. "There is discussion about potentially the types of software or physical changes you could make to the chips themselves to do better location-tracking." The idea was explicitly included in the plan unveiled last month, which aims to keep U.S. technology dominant as AI adoption accelerates globally.
