TLDR
- Nvidia released opt-in software that tracks AI chip locations using telemetry data and network information
- The tracking system monitors GPU health but includes no remote shutdown capabilities according to the company
- Lawmakers introduced the Chip Security Act in May requiring location verification for advanced AI chips
- Federal investigators discovered smuggling networks transported over $160 million in Nvidia chips to China
- Shares fell 1.3% after hours when Oracle reported weak earnings and announced $50 billion in spending plans
Nvidia rolled out software that pinpoints AI chip locations worldwide. The voluntary service monitors GPU performance while collecting geographic data through a centralized dashboard.
The system gathers telemetry data including IP addresses and time stamps from enrolled devices. Customers can track their chip fleets globally or by specific computing zones. Nvidia clarified the technology doesn’t allow remote control of hardware.
The company stated it provides “read-only telemetry” with no ability to disable chips from outside locations. Customer systems remain under their complete control while sharing location information.
Washington Demands Chip Security
The software arrives as federal lawmakers push for mandatory tracking on advanced semiconductors. Senator Tom Cotton led a bipartisan group in May to propose the Chip Security Act. The legislation would mandate security features and location verification in cutting-edge AI chips.
Federal prosecutors uncovered smuggling operations that illegally moved more than $160 million worth of Nvidia chips into China. Export regulations currently bar Nvidia from selling advanced processors to Chinese buyers without government approval.
Beijing responded by cautioning Nvidia about adding security vulnerabilities to its products. Chinese officials blocked domestic technology companies from purchasing Nvidia hardware following national security reviews. China remains undecided on permitting H200 chip imports despite U.S. authorization.
Oracle Guidance Hits Tech Stocks
Nvidia shares declined 1.3% in extended trading after Oracle delivered disappointing financial projections. The database company forecast earnings below expectations for its current quarter and revealed $50 billion in planned capital spending for fiscal 2026.
Oracle’s spending projection increased from earlier estimates of $35 billion. The company’s remaining performance obligation totaled $523 billion, missing analyst targets.
Oracle maintains substantial contracts with Nvidia for data center processors. The underwhelming outlook raised questions about Oracle’s capacity to generate returns on infrastructure investments.
CoreWeave tumbled over 3% in after-hours trading. Other semiconductor companies including Broadcom, Marvell Technology, and AMD dropped between 0.5% and 1%. These firms supply components for AI infrastructure alongside Nvidia.
Oracle recently issued billions in corporate bonds to finance AI infrastructure expansion. Insurance costs for Oracle’s debt reached levels not seen since March 2009 last week.
Technology Implementation
The tracking software operates through client applications installed on customer hardware. The technology converts network data and system information into geographic coordinates. Nvidia published dashboard screenshots displaying IP addresses and location markers.
Customers receive fleet utilization metrics through the monitoring interface. The voluntary system provides transparency into chip deployment patterns without external intervention capabilities.
President Trump suggested rolling back certain export restrictions. Regulations governing the most advanced AI processors will continue. The new tracking capabilities could support enforcement of remaining trade limitations.
Oracle contracts to provide computing resources to major AI developers including OpenAI. Growing competition from Google and other technology giants has intensified scrutiny of OpenAI’s expansion plans in recent weeks.
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