NVIDIA Denies Installing Secret Tracking Devices in AI Chip Shipments Amid New Report

Sure, let me dive into this. It’s a bit chaotic, so bear with me.

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You know, NVIDIA’s like this giant in the tech world, kinda hogging the AI accelerator scene with this whopping 90% share or something. But lately, they’ve been caught in this tug-of-war between China and the US. It’s all about these AI GPU exports and who’s freaking out over security stuff. I mean, can you blame them? The chip in question, the H20 GPU, is like this prized gem for Chinese big-shot AI companies trying to catch up with the US.

But here’s the kicker—China’s got this gazillion orders for the H20, but their officials are sweating bullets about the chips flooding their market. Just heard from this Reuters thing on August 13 that NVIDIA’s, yet again, playing the “we’re innocent” card. Honestly, I wasn’t really surprised. Maybe you were? I dunno.

Switching lanes for a sec—apparently, some sneaky trackers got found in batches of AI gear, from names like Dell and Super Micro, stuffed with NVIDIA and AMD chips. But hey, these trackers weren’t aimed at China directly. It’s more like they were stuck in to catch the ones who might be playing dirty and sneaking stuff into China.

Couple of folks with the inside scoop—you know, the ones who always have the juicy bits—say these trackers were stuck in shipping packages, not the chips themselves. Thank goodness, right? Super Micro’s tight-lipped on this, and Dell’s all “we’ve got no clue about any trackers,” which feels kinda convenient. Meanwhile, NVIDIA’s yelling out that it’s not them. And honestly, if they say it enough, who knows, maybe we’ll believe it.

Anyway, back to this H20 drama. It’s got a shady timeline. Once upon a time, Uncle Sam’s government banned these H20s from making their way to China because they weren’t feeling super secure about it. This ban hit NVIDIA’s pockets hard, but hey! It only lasted a bit. What’s that phrase? Every cloud’s got a silver lining? Or was it lining pockets? Who knows.

Then there’s the hot gossip about NVIDIA’s CEO, Jensen Huang. Apparently, he cozied up to President Trump and got the ball rolling again on the China sales. And boom, they were back to ordering heaps of those H20s—like 300,000 extra chips, no less. Imagine the sheer mountain of silicon, though. It’s mind-boggling.

But wait, let’s not forget the Beijing authorities having a meltdown over this massive chip influx. Their national security alarms are blaring. NVIDIA’s bigwig on security, David Reber Jr. or something, had to pen this blog post swearing up and down there are no sneaky backdoors or spy gadgets in their chips.

In this whirlpool, China’s AI firms feel the heat from their government to maybe ditch the H20s while NVIDIA’s still trying to play the good guy role.

Then there’s this wild development—US cuts a deal with NVIDIA and AMD to rake in 15% of their chip revenues from China sales. Both sides are scratching their heads about whether this deal’s a fair game. Is it just me, or does it feel like trading one red flag for another?

Anyway—oh wait, where was I? Right! NVIDIA’s fingers are crossed about getting their chips back to China but, honestly, who knows what curveball the next few weeks might throw at them.

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That was a ride, huh?