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US Embeds Trackers in AI Chip Shipments To Catch Diversions To China (reuters.com) 44

An anonymous reader shares a 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. The measures aim to detect AI chips being diverted to destinations which are under U.S. export restrictions, and apply only to select shipments under investigation, the people said.

They show the lengths to which the U.S. has gone to enforce its chip export restrictions on China, even as the Trump administration has sought to relax some curbs on Chinese access to advanced American semiconductors. The trackers can help build cases against people and companies who profit from violating U.S. export controls, said the people who declined to be named because of the sensitivity of the issue.

US Embeds Trackers in AI Chip Shipments To Catch Diversions To China

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  • It's not a national security issue in regards to the chips or we wouldn't have seen a deal with Nvidia so this is just to make sure the government gets it's vig (cool cool cool that the feds are basically loan sharks that will bust thumbs for their money)

    Since this tracking must be about revenue collection let the revenue collection service handle it.

    • It's not a national security issue in regards to the chips or we wouldn't have seen a deal with Nvidia

      Alternately, it is a national security issue, but Cheeto Benito DGAF about national security.

      I don't have a strong opinion about whether or not it is, and in fact suspect it ain't, but...

      • We wouldn't have thought the government would be able to put a price tag on national security but here we are. Apparently its 15%, what a bargain!

  • by PPH ( 736903 )

    ... who makes these trackers?

    Quis custodiet ipsos custodes?

  • Secretly?? (Score:5, Insightful)

    by trelanexiph ( 605826 ) on Wednesday August 13, 2025 @10:37AM (#65587200) Homepage
    "U.S. authorities have secretly..." If it's on Slashdot it's not a secret. The US Government wants everyone to know these trackers are there.
    • Re: (Score:2, Insightful)

      by Anonymous Coward

      Take a look at who’s running these departments.

  • If you assume these AI servers contain integrated WIFI chips, then the question is why a backdoor wasn't installed?

    This likely could be only a few lines of code. Also, the transmitted signal doesn't necessarily have to connect to the Internet. It could either send an encrypted packets of message identifying itself or, also, the message could simply state what ports are open and sysadmin credentials. This, then, could be intercepted with a packet sniffer. In any case, there are many other ways a backdoor cou

  • isn't secret anymore, so what's the point?

    • Given that Trump has just removed the export restrictions (pay to play - NVidia allowed to export to China as long as they give 15% of revenues to US government !!!), the story is irrelevant.

      China had also been using other workarounds, in addition to using less powerful NVidia chips (just need more of them, so not much of a restriction), as well as domestically produced ones fro Huawei. One workaround (scam) has been to have the chips shipped to different country, maybe even installed in a datacenter there,

  • It's not a secret, because it isn't true. The US Government wants to plant this false-flag as a deterrent. There are literally MILLIONS of chips send in HUNDREDS OF THOUSANDS of packages, and they CAN'T BE TRACKED.

    I know you're thinking "Apple Tag". That tech needs a receiver, a local transmitter, and software. While you'll find that in any airport in the US, you won't find that on harbor ports, freight or container ships, and offloading terminals. In China. LOL.

    This is just something put out "under t

  • "U.S. authorities have secretly..."

    So... nobody in China reads Slashdot?

    • I'm in China reading slashdot. No, it's not blocked. Nobody in China cares about slashdot (anymore). I'm not sure anyone cares about any western sites wrt censorship any more - the GFW seems to be more about enforcement of digital sovereignty and associated laws, than it is about censorship - it used to be the other way around, imo.

  • by kyoko21 ( 198413 ) on Wednesday August 13, 2025 @12:23PM (#65587510)

    Putting trackers into shipping containers containing "high value targets" will potentially those lazy smugglers. The real serious ones probably have the entire vertical line mapped out and bribed out so that they can ensure their shipments are not tampered with.

    There is no such thing as problem that money can't solve. You just don't have enough money.

    In the case with these smugglers, there's always money and they solve their problems with money.

    Just like the story with Frank Lucas.

    It'll be interesting to see the video that Gamers Nexus will be releasing in a few days that may have some related content about this.

    • Most smugglers, and criminals in general, *are* lazy. They have an overwhelming and unwarranted belief that they will never get caught.

  • You get a faraday cage. You get faraday wallpaper. Your trucks get faraday mudflaps...
  • It'll only be a small hurdle and it's one that China needs to jump anyway, so this just encourages them to jump it sooner, and accelerates the fall of the USA.

    Well done USA. You did well for a short while on the back of WW2, but your time is up now, so you had better get used to not being the top dog any more...best to stop fighting it, and roll with the changes to lessen the impact.

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