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US government uses tracking techniques to combat AI chip smuggling

US government is secretly tracking shipments to China using embedded location trackers
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Image: Ekaterina-Bolovtsova via Pexels

14 August 2025

The race for dominance in the field of artificial intelligence (AI) has intensified, with the United States expressing serious concerns about China’s rapid progress. These concerns have led the US government to implement strict measures to control the export of advanced AI chips.

According to sources familiar with the matter, US authorities have secretly embedded tracking devices in certain chip shipments. The main goal is to prevent the illegal diversion of advanced AI chips to China.

Although this secret tracking method is not publicly acknowledged by the US government, two separate sources with direct knowledge have revealed its existence to Reuters. They state that trackers play a crucial role in building legal cases against individuals who evade export controls.

 

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This practice of tracking shipments mirrors the techniques used to trace weapons transports, further underscoring the level of concern surrounding the potential misuse of AI technology.

Sources within the AI server supply chain indicate that leading manufacturers such as Dell, Super Micro, Nvidia, and AMD are reportedly subject to this oversight.

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