U.S. authorities are secretly tracking shipments of advanced AI chips from prominent manufacturers such as Dell, Super Micro, Nvidia, and AMD to prevent their illegal diversion to China. This initiative reflects President Donald Trump’s strategic effort to gain a competitive edge over China’s tech market by imposing stringent controls on the export of critical artificial intelligence (AI) technology.
Trump has not only blocked American firms from selling AI chips to China but has also implemented a covert tracking mechanism to ensure compliance with these restrictions. According to a Reuters report, “U.S. authorities have secretly placed location tracking devices in targeted shipments of advanced chips they see as being at high risk of illegal diversion to China, according to two people with direct knowledge of the previously unreported law enforcement tactic.” This move underscores the administration’s heightened focus on safeguarding sensitive technology amid escalating U.S.-China tech rivalry.
While the government’s tracking efforts are limited to “select shipments under investigation,” the full scope of this practice remains unclear, as Reuters was unable to determine the extent or the specific agencies involved. However, the report identified potential partners, including the Commerce Department’s Bureau of Industry and Security, which oversees export controls and enforcement, alongside Homeland Security Investigations and the FBI. This multi-agency approach highlights the complexity and sensitivity of the operation, aimed at curbing the flow of cutting-edge AI technology to a geopolitical competitor.
