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The US Commerce Department is looking into whether DeepSeek – the Chinese company whose AI model’s performance rocked the tech world – has been using US chips that are not allowed to be shipped to China, a source familiar with the matter said.
China’s DeepSeek last week launched a free assistant it says uses less data at a fraction of the cost of US models. Within days, it became the most downloaded app in Apple’s App Store and stirred concerns about US’ lead in AI, sparking a rout that wiped around $1 trillion off US technology stocks.
Current restrictions on Nvidia artificial intelligence processors are meant to stop its most sophisticated chips from reaching China.
Organised AI chip smuggling to China has been tracked out of countries including Malaysia and Singapore, the source said.
An Nvidia spokesperson said many of its customers have business entities in Singapore and use those entities for products destined for the US and the west. “We insist that our partners comply with all applicable laws, and if we receive any information to the contrary, act accordingly,” Nvidia said.
In a statement yesterday, Singapore’s trade ministry cited Nvidia’s comment saying there is no reason to believe that DeepSeek obtained any export-controlled products from Singapore.
“We expect US companies, like Nvidia, to comply with US export controls and our domestic legislation,” it said. “Our customs and law enforcement agencies will continue to work closely with their US counterparts.”
DeepSeek has said it used Nvidia’s H800 chips, which it could have legally purchased in 2023. Reuters could not determine whether DeepSeek has used other controlled chips that are not allowed to be shipped to China.
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