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3w ago

U.S. Lawmaker Proposes Bipartisan Bill to Curb Nvidia AI Chip Smuggling to China

The legislation mandates on-chip tracking and licensing controls, giving the Commerce Department six months to draft enforceable rules.

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Overview

  • Representative Bill Foster has introduced a bipartisan bill to combat smuggling of Nvidia AI chips into China by requiring on-chip location tracking and licensing enforcement.
  • The legislation has strong bipartisan support, with backing from Representatives Raja Krishnamoorthi and John Moolenaar, and aims to strengthen U.S. export controls.
  • The U.S. Department of Commerce will have six months to develop regulations mandating chip tracking and mechanisms to prevent unlicensed usage.
  • Reports have highlighted large-scale smuggling and unauthorized use of Nvidia chips in Chinese AI systems, including those developed by DeepSeek.
  • Nvidia CEO Jensen Huang has warned that U.S. restrictions must be paired with enabling policies to maintain American AI leadership against rising competition from Chinese firms like Huawei.