Nvidia has developed new software capable of verifying the country in which its AI chips are operating, according to a recent Reuters report citing sources familiar with the matter.

The feature, which has been demonstrated privately but not yet released, is a customer-installed software option. The report says that this feature would leverage the confidential computing capabilities of Nvidia's graphics processing units (GPUs) to allow data centre operators to monitor their fleet's health and inventory. According to an Nvidia official, the system would infer a chip's location by analysing communication delays with company-run servers.

As per Reuters, Nvidia stated the software is designed as a service to help customers track computing performance and manage inventory. It will first be available on the company's latest Blackwell chips, which have enhanced security features. Nvidia is reportedly examining options to extend the capability to its previous Hopper and Ampere chip generations. The company has strongly denied that its products contain security backdoors.

The potential release comes amid pressure from US officials to prevent the smuggling of advanced AI chips to restricted destinations like China. The US Department of Justice has pursued criminal cases against alleged smuggling rings. Concurrently, China's top cybersecurity regulator has reportedly questioned Nvidia over whether its chips contain backdoors that could compromise security.