Nvidia Boosts Chip Tracking in Southeast Asia to Fight Smuggling

Yahoo Finance · Mackenzie Hawkins ·

Nvidia Corp. is stepping up monitoring of AI accelerators sold in Southeast Asia, a strategic step to curtail semiconductor smuggling after criticism it hasn...

(Bloomberg) -- Nvidia Corp. (NVDA) is stepping up monitoring of AI accelerators sold in Southeast Asia, a strategic step to curtail semiconductor smuggling after criticism it hasn't done enough to stop shipments from illegally reaching Chinese companies.

The chipmaker now requires customers in the region to enroll in its so-called fleet intelligence system — which tracks the location of AI accelerators owned by participating companies, among other metrics — in order to become official Nvidia Cloud Partners, or NCPs, according to people familiar with the matter.

The NCP designation is highly coveted for AI cloud computing providers, granting both a public stamp of approval and preferred chip access from a company that plays kingmaker to the industry. Nvidia's idea is to use the carrot of that label to encourage broader uptake of what remains a voluntary chip tracking program, said the people, who requested anonymity to discuss a confidential new measure.

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