US embeds trackers in AI chip shipments to catch diversions to China

U.S. authorities have embedded tracking devices in shipments of advanced AI chips to prevent illegal diversion to China. These measures aim to enforce export restrictions on key technologies. Trackers have reportedly been found in shipments from Dell and Super Micro, containing Nvidia and AMD chips.

The U.S. has tightened chip export rules since 2022, seeking to curb China's military advancements. Critics in China condemn these actions as attempts to hinder its growth. Both the Department of Commerce and law enforcement agencies may be involved in these tracking efforts. Investigations reveal that individuals involved in smuggling take precautions to check for these trackers.