WASHINGTON – The U.S. Department of Commerce is investigating whether Chinese artificial intelligence company DeepSeek has obtained and used Nvidia AI chips that are prohibited from being exported to China, according to a source familiar with the matter. The probe comes amid concerns that the company’s advanced AI model could have leveraged restricted U.S. technology to achieve its breakthrough performance.
DeepSeek’s Rapid Rise Raises Questions
DeepSeek, which recently introduced a free AI assistant claiming to operate with significantly less data and at a fraction of the cost of U.S. models, has rapidly gained global attention. Within days of its release, the app became the most downloaded on Apple’s App Store, triggering concerns about U.S. dominance in the AI sector and contributing to a sharp market downturn. The reaction among investors saw nearly $1 trillion wiped from the value of major U.S. technology stocks.
Tracking AI Chip Smuggling Networks
U.S. authorities have been monitoring the illicit trade of AI chips, particularly those originating from Nvidia, through intermediaries in Malaysia, Singapore, and the United Arab Emirates. These networks are suspected of circumventing export controls designed to prevent China from accessing the most advanced AI semiconductors.
Nvidia, the leading supplier of AI processors, has stated that its revenue from Singapore—accounting for approximately 20% of its global sales—does not indicate illegal diversions to China. A company spokesperson reaffirmed Nvidia’s commitment to compliance, asserting that all business partners must adhere to export regulations and that appropriate actions would be taken against any violations.
DeepSeek’s Use of Nvidia Chips Under Scrutiny
DeepSeek has previously stated that it utilized Nvidia’s H800 chips, which were legally available for purchase in 2023. However, it remains unclear whether the company has acquired and used more advanced, restricted processors that fall under U.S. export bans. Reuters has not been able to verify whether DeepSeek has sourced or deployed such controlled chips in its AI development.
As global competition in artificial intelligence intensifies, the U.S. government continues to tighten restrictions on the export of critical semiconductor technology. The investigation into DeepSeek underscores Washington’s determination to safeguard its technological edge while enforcing trade policies aimed at curbing China’s access to cutting-edge AI capabilities. Zai)