U.S. Government Check On DeepSeek

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The U.S. Commerce Department is investigating whether DeepSeek, a Chinese company whose AI model’s performance shocked the tech industry, has been using U.S.-based chips according to a source with knowledge of the situation.

According to China’s DeepSeek, its free assistant uses less data and costs a fraction of what the U.S. Models. Based on several downloads, it quickly surpassed all other apps in the Apple App Store, raising concerns about the US’s dominance in AI and leading to a defeat that cost the US economy about $1 trillion.

Nvidia’s artificial intelligence processors are restricted to prevent its most advanced chips from entering China. The source claimed that the organized smuggling of AI chips to China has been traced to Malaysia, Singapore, and the United Arab Emirates.

DeepSeek and the Commerce Department did not immediately respond to requests for comment.

Nvidia stated, “We demand that our partners abide by all relevant laws and take appropriate action if we learn otherwise. “

‘There is no reason to suspect that DeepSeek acquired any export-controlled goods from Singapore, according to a statement released by Singapore’s trade ministry on Saturday,’   Nvidia said in a  statement

If DeepSeek had obtained access to Nvidia chips subject to U.S. sanctions through Singaporean intermediaries, the ministry did not confirm U.S. export restrictions, it noted that it has consistently enforced the rule of law and taken firm, decisive action against those who disobey the regulations.

 

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ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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