The ongoing battle between the United States and China over advanced AI technology has taken a new turn as lawmakers consider implementing tracking technology in high-performance chips. The proposal aims to address the ineffectiveness of current export controls, which have failed to prevent Chinese entities from acquiring restricted American technology despite extensive sanctions.
The Tracking Proposal
Congressman Bill Foster, a Democrat from Illinois with a background in particle physics and a Harvard doctorate, plans to introduce legislation requiring advanced AI chipmakers like Nvidia to integrate location reporting systems into their products. The proposed technology would enable chips to communicate with secure servers whenever they go online, allowing authorities to determine their general location at the country level based on signal transmission time. According to sources cited by Reuters, similar technology is already being used by Alphabet to monitor its in-house Tensor AI chips across data centers as a security measure against theft.
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| The NVIDIA H100 AI GPU, a centerpiece in the proposed tracking legislation aimed at advanced AI technology |
Beyond Simple Tracking
Foster's proposal goes further than mere location tracking. The congressman also wants to implement what some are calling a kill switch capability that would prevent chips from booting up if they detect they're being used without proper export licenses. While technical experts consulted by Reuters suggest the location tracking aspect is feasible with existing technology, this geo-blocking functionality presents more significant technical challenges. Foster has indicated that further discussions with chip manufacturers would be necessary to determine implementation methods.
The Export Control Problem
The proposal comes in response to the widely acknowledged ineffectiveness of current export restrictions. Since 2022, both the Biden and Trump administrations have enforced bans on shipping advanced chips to China in an effort to maintain American technological dominance. These controls were recently expanded to include previously allowed chips like AMD's MI308 and Nvidia's H20, resulting in substantial financial write-offs for both companies—USD 800 million for AMD and USD 5.5 billion for Nvidia.
Evidence of Smuggling
Despite these restrictions, reports indicate that Chinese businesses have successfully smuggled advanced chips into mainland China. The company behind DeepSeek, one of China's most sophisticated AI models, has been accused of using smuggled Nvidia AI chips. Former U.S. Commerce Secretary Gina Raimondo has criticized the current approach as a fool's errand, while a U.S. Senate investigation found that the Bureau of Security and Industry (BIS), the agency responsible for export controls, lacks adequate resources and relies primarily on voluntary compliance from manufacturers.
Industry and Political Response
The tracking proposal reportedly has bipartisan support in Congress, though it will likely face scrutiny regarding privacy implications and technical feasibility. Nvidia has previously stated that they cannot effectively track their chips after export, citing various trade loopholes that Chinese entities exploit to gain access to restricted technology. As AI increasingly becomes a national security concern for the United States, more aggressive technological solutions like Foster's proposal may gain traction among policymakers seeking to protect American technological advantages.