The US government is investigating whether DeepSeek, a Chinese artificial intelligence startup, managed to bypass US chip restrictions by purchasing advanced Nvidia chips through intermediaries in Singapore.
These restrictions, implemented to curb China’s technological advancements, have been under scrutiny after DeepSeek unveiled its AI model, which reportedly utilizes sophisticated chips from Nvidia. The White House and the FBI are looking into the matter, and sources familiar with the investigation have suggested that DeepSeek might have evaded these export controls.
Nvidia, for its part, has maintained that it ensures compliance with all relevant laws, stating that it believes DeepSeek did not violate US regulations. Despite this, Howard Lutnick, President Donald Trump’s nominee for the Commerce Department, hinted during his confirmation hearing that DeepSeek may have found ways to circumvent US export controls. Nvidia also emphasized that its products are subject to performance thresholds and that chips like the H800, which DeepSeek reportedly used, were designed to fall outside of US export restrictions. However, some lawmakers have called for stronger enforcement, suggesting that the current rules may not be sufficient to prevent such workarounds.
In response to the situation, members of the House Select Committee on the Chinese Communist Party have urged the US government to expand restrictions on chips such as Nvidia’s H20, which DeepSeek is also said to use. The committee has recommended that the US tighten export controls on advanced chips and consider imposing further limitations on chip shipments to Singapore, where the chips appear to be rerouted. The committee’s concerns reflect a broader push to address potential loopholes in the export control system, which could allow China to acquire critical technologies despite the restrictions.
The controversy over DeepSeek’s model, which has gained significant attention for its cost-effectiveness and high performance, comes amid growing concerns over China’s AI capabilities and its potential military and surveillance applications. Some experts have raised the possibility that DeepSeek may have employed a technique called distillation to extract data from other sources, further fueling doubts about the company’s compliance with US regulations. Additionally, users have pointed out that DeepSeek’s AI appears to censor sensitive topics related to China, such as the Tiananmen Square massacre, which some see as further evidence of the company’s ties to the Chinese government.
With input from Bloomberg, Reuters, and the Wall Street Journal.
