US Representative Bill Foster is preparing legislation to track the location of advanced artificial intelligence chips, such as those made by Nvidia Corp (NASDAQ:NVDA, ETR:NVD), after reports of widespread smuggling into China, according to a Reuters exclusive.
The bill would direct the Commerce Department to draft rules requiring chips to verify their authorised use under export licences and prevent unauthorised devices from operating.
The initiative, which has bipartisan support, follows concerns that restricted U.S. chips are aiding Chinese AI projects.
Foster, a former physicist, said existing technology makes such tracking feasible. Nvidia declined to comment, while industry experts confirmed the chips already contain location-tracking capabilities.
Foster said the proposal aims to address an “immediate” national security risk.