The United States Commerce Department is investigating whether DeepSeek has been using restricted US semiconductor technology, according to a report by Reuters. Citing a source familiar with the matter, the probe comes amid growing concerns about China’s progress in AI and potential violations of export restrictions on advanced US chips.
DeepSeek recently introduced a free AI assistant that reportedly operates with significantly lower data requirements and at a fraction of the cost compared to US-developed models. It quickly gained traction, becoming the most downloaded application on Apple’s App Store within days of its release. The launch also triggered a market reaction, contributing to a selloff in US technology stocks that resulted in approximately US$1 trillion in losses.
The US government previously imposed restrictions on the export of high-performance AI chips, particularly those manufactured by NVIDIA, to prevent their use in China. These measures are aimed at limiting China’s access to cutting-edge semiconductor technology that could enhance its AI capabilities. However, there have been reports of AI chip smuggling into China through intermediaries in Singapore, the United Arab Emirates (UAE), and even Malaysia.
Speaking to Reuters, an NVIDIA spokesperson acknowledged that many of the company’s customers operate business entities in Singapore, which they use for transactions involving products destined for the US and other Western markets. The company stated that it requires its partners to adhere to all relevant laws and takes appropriate action if violations are identified.
DeepSeek has disclosed that it utilised NVIDIA’s H800 chips, which were legally available for purchase in 2023. The company is also reported to have access to Nvidia’s H20 chips, which remain permitted for export to China. The Biden administration had previously considered restricting these chips, and discussions on potential new controls are now taking place under the recently appointed Trump officials.
(Source: Reuters)
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