<div id="readability-page-1"><p>Nvidia (NVDA) is developing new software capable of verifying the physical location of its powerful AI chips, a direct response to intense pressure from Washington to prevent restricted hardware from landing in countries like China. The new opt-in service utilizes a client software agent that customers can install to monitor the health and location of their AI Graphics Processing Units (GPUs).</p><h3>TipRanks Cyber Monday Sale</h3><ul><li> Claim 60% off TipRanks Premium  for data-backed insights and research tools you need to invest with confidence.  </li><li>  Subscribe to TipRanks' Smart Investor Picks  and see our data in action through our high-performing model portfolio - <u> now also 60% off </u></li></ul> <p>This move comes as the U.S. Justice Department investigates alleged smuggling rings that have moved over $160 million in Nvidia chips to China. The software, which displays details like a machine's IP address and location, could potentially aid in enforcing U.S. export controls, which bar Nvidia from selling its most advanced AI chips to prohibited locations without a special license.</p> <h2><strong>Location Telemetry Sparks Compliance Debate</strong></h2> <p>The new software uses read-only telemetry, the automated process of collecting data from remote sources, to allow customers to visualize their GPU fleet utilization in a dashboard.</p> <p>Crucially, Nvidia has been quick to assuage fears of remote control, offering a firm statement: &#34;There is no kill switch,&#34; and adding that the software contains &#34;no features that allow NVIDIA to remotely control or take action on registered systems.&#34;</p> <p>Experts suggest this feature will benefit compliant firms. Senior research fellow Lukasz Olejnik noted that the system could help firms verify their GPU fleets remain in approved locations and demonstrate compliant usage to regulators, which could positively impact their investment outlook.</p> <h2><strong>Chinese Officials Push Back</strong></h2> <p>Despite the compliance benefits, the introduction of location-tracking software risks further escalating tensions with Beijing. Chinese officials have previously warned Nvidia against equipping its chips with tracking features, as well as &#34;potential backdoors and vulnerabilities.&#34;</p> <p>Following a national security investigation into some of Nvidia's chips to check for these backdoors, Chinese officials have already prevented local tech companies from purchasing products from the American chip designer. The geopolitical stakes remain high, even as Washington pushes laws like the Chip Security Act, which would mandate security mechanisms and location verification in advanced AI chips.</p> <p>The key takeaway from this story is that Nvidia's new opt-in telemetry software is a clever move to help customers comply with U.S. export controls and curb chip smuggling, though the company vigorously denies the existence of a remote &#34;kill switch.&#34;</p> <h2><strong>Is Nvidia a Buy, Hold, or Sell?</strong></h2> <p>Analyst sentiment for Nvidia (NVDA) is highly bullish, maintaining a consensus rating of Strong Buy. This is based on ratings from 41 Wall Street analysts in the last three months, with 39 analysts recommending a Buy, one recommending a Hold, and one recommending a Sell. The average 12-month consensus price target for NVDA is $258.45. This average target represents a substantial 40.63% upside from the last closing price.</p></div>

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<p>Nvidia has launched new software to track the location of its AI chips, aiming to prevent smuggling to restricted countries like China. The software, which uses read-only telemetry, helps customers comply with U.S. export controls. Nvidia assures there is no remote control feature, addressing concerns of a 'kill switch.' The move may escalate tensions with China, which opposes tracking features. Despite geopolitical risks, analysts remain bullish on Nvidia, with a strong buy consensus and a 40.63% upside potential.</p>

- Nvidia is developing software to verify the location of its AI chips in response to U.S. pressure to prevent sales to countries like China.  
- The software aims to assist in compliance with U.S. export controls amid investigations into smuggling rings involving Nvidia chips.  
- While the software offers compliance benefits, it risks escalating tensions with China, which has already restricted local companies from purchasing Nvidia products.

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Nvidia Launches New Tracking Software to Fight Chip Smuggling, But Vows "No Kill Switch"