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Server manufacturers are reportedly embedding ‘backdoor measures’ into AI server shipments, a development that has raised significant concerns for NVIDIA’s future in China. Beijing has been vocal about backdoors in NVIDIA’s AI chips and now it seems the U.S. government is secretly placing location tracking devices into advanced chips to detect any potential diversions. According to a Reuters report, U.S. authorities are using server manufacturers like Dell and Supermicro to add these trackers.
The measures aim to identify AI chips being diverted to restricted export destinations. Although NVIDIA claims there are no security risks with its chips, China remains unsatisfied. Supply chain sources indicate that tracking devices are hidden in shipments by these firms.
These trackers, which can be as large as smartphones, have caused concern among Chinese chip resellers who have received newer shipments containing them. This has prompted Beijing to investigate such backdoors, potentially threatening NVIDIA’s ability to sell its AI chips in the region. As of now, NVIDIA has declined to comment, and further information is being gathered.

The NVIDIA H200 AI GPU. Image: NVIDIA Corporation