U.S. Secretly Tracked AI Shipments to See if They Ended Up in China

U.S. authorities secretly placed tracking devices in certain shipments of advanced computer chips they believed could be illegally diverted to China, according to a new report, Andrew Nusca reported for Fortune Tech.

The shipments reportedly involve servers from Dell and Super Micro that contain Nvidia and AMD chips.

According to Reuters, the tactics are meant to build cases against smugglers profiting from violations of U.S. export controls and “apply only to select shipments under investigation.”

Law enforcement has used location trackers for decades, but applying them to semiconductor shipments is relatively new.

The U.S. has restricted AI chip exports since 2022. Some trackers are as large as a smartphone, while others are much smaller—and sometimes both types are used together.

The shipments reportedly involve servers from Dell and Super Micro that contain Nvidia and AMD chips. Reuters sources said the trackers were “typically hidden in the packaging” of shipments, though it remains unclear who installs them, where, or when.

Based on past enforcement activity, the Departments of Commerce and Homeland Security, along with the FBI, are believed to be involved.

As for the tech companies themselves? Perhaps not at all. Sources suggested the trackers could just as easily have been installed without the knowledge of manufacturers or shippers.