US probes DeepSeek over suspected use of banned Nvidia AI chips
The US Department of Commerce is investigating whether DeepSeek used Nvidia AI chips that are banned from export to China to train its recently released chatbot. DeepSeek claims it used H800 chips purchased legally in 2023, but the investigation reportedly follows suspicions from US industry executives and concerns about the company's cost and development timeline.
What happened
The US Department of Commerce is examining whether DeepSeek, a Chinese company, used advanced Nvidia AI chips whose export to China is restricted by US law. DeepSeek released a free chatbot last week that reportedly uses less data and costs less than American models while offering comparable performance.
DeepSeek stated it used Nvidia H800 chips, which could have been legally purchased in 2023 but are now covered by US export restrictions. According to Reuters sources, AI chips from Nvidia have been smuggled into China via Malaysia, Singapore, and the United Arab Emirates.
Reported impact
DeepSeek's chatbot became the most-downloaded app on Apple's App Store within days and triggered concerns about US leadership in AI, resulting in approximately $1 trillion in losses from US technology stocks. US industry executives expressed skepticism about DeepSeek's claims regarding its chip usage.
Index analysis
The investigation concerns whether DeepSeek violated US export controls on Nvidia chips. Nvidia stated that its partners must comply with applicable laws and that it acts accordingly if informed otherwise.
Governance controls
The US maintains export restrictions on advanced Nvidia AI chips to prevent their reach into China. Singapore's ministry of commerce stated it has not found reason to believe DeepSeek sourced restricted products through Singapore and said its customs and law enforcement services will continue coordinating with US counterparts.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.