Nvidia says that it hasn't seen "substantiation or received tips" about chip smuggling via data centers outside of China, after The Information's DeepSeek story (Mark Bergen/Bloomberg)

Nvidia is reportedly testing new tracking software that could allow for the monitoring of the approximate location of its AI chips amid ongoing rumors of chip smuggling. This development comes as the company faces scrutiny over its supply chain and the potential illegal export of its products, particularly to China.

Meta is reportedly transitioning from its open Llama models to a new AI model codenamed 'Avocado,' which is expected to be a closed model aimed at direct sales, with a potential release in spring 2026. This shift indicates a strategic pivot in Meta's approach to AI development.

Deepseek, a Chinese AI startup, is reportedly using thousands of smuggled Nvidia chips for training its next major AI model, raising concerns about compliance with international trade regulations. This information comes from sources cited by The Information, highlighting the lengths to which the company is going to enhance its technological capabilities.

President Trump has announced a significant policy shift allowing Nvidia to sell its advanced H200 AI chips to approved customers in China, effectively lifting a previous export ban imposed due to national security concerns. This decision includes a 25% surcharge on sales, which experts have criticized as illogical given the context of the deal.

Starcloud, a startup backed by Nvidia, has successfully launched a satellite equipped with an Nvidia H100 chip, which is now operational and querying responses from Google's AI model, Gemma. This marks a significant milestone as it represents the first instance of training an AI model from space, showcasing the potential of orbital data centers in AI development.

Nvidia is developing technology to verify the physical location of its AI chips, primarily marketed as a fleet management tool, which could also assist in enforcing export restrictions. This initiative comes amid ongoing scrutiny regarding the potential smuggling of its chips, particularly into China.

DeepSeek, a Chinese AI startup, is reportedly developing its next AI model using several thousand Nvidia Blackwell chips that were smuggled into China through third-party countries. This development raises concerns regarding compliance with international trade regulations and the implications of using restricted technology.

Google’s Tensor Processing Units (TPUs), specifically the TPUv7, are emerging as a formidable alternative to Nvidia’s GPUs, which have dominated AI advancements for over a decade. This shift is exemplified by the training of cutting-edge models like Google’s Gemini 3 and Anthropic’s Claude 4.5 Opus on TPUs rather than Nvidia hardware.