Key Takeaways:
- The Trump administration is considering blocking DeepSeek’s access to U.S. technology and services.
- DeepSeek is under scrutiny for possible intellectual property theft and ties to the Chinese Communist Party.
- U.S. lawmakers are probing Nvidia’s role in indirectly supplying restricted chips to DeepSeek.
- DeepSeek’s rapid AI development has triggered regulatory actions in the U.S. and Europe.
- Nvidia denies wrongdoing, stating it complies with all U.S. export regulations.
U.S. Targets Chinese AI Firm DeepSeek Over Security and Trade Concerns
The U.S. government is weighing strict measures against Chinese artificial intelligence startup DeepSeek, including cutting off its access to American technology and potentially banning U.S. users from its services, according to sources cited by The New York Times.
The proposed actions follow DeepSeek’s release of a highly advanced, low-cost open-source chatbot, DeepSeek-V3, which stunned the tech industry earlier this year.
Reportedly developed for only $6 million, the model rivaled top-tier U.S. AI tools at a fraction of the cost. Officials in Washington fear this signals a growing competitive edge for China in the AI arms race.
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Deepening Scrutiny on DeepSeek and Nvidia
A recent report by the U.S. House Select Committee on the Chinese Communist Party accused DeepSeek of improperly acquiring and using data from American AI models and funneling sensitive user information to Beijing.
The report also alleged that DeepSeek may have trained its systems using as many as 60,000 Nvidia chips — including 20,000 that fall under U.S. export restrictions.
“We now know this tool exploited U.S. AI models and reportedly used advanced Nvidia chips that should never have ended up in CCP hands,” said Committee Chairman John Moolenaar (R-MI), who announced that the panel would demand answers from Nvidia regarding its sales across Asia.
In response, Nvidia stated it fully complies with U.S. export controls. “If the government felt otherwise, it would instruct us,” a company spokesperson said. Nvidia also clarified that sales attributed to Singapore often involve American customers’ subsidiaries, with products shipped to permitted regions such as Taiwan and the U.S.
Meanwhile, European regulators have also taken notice. Italy’s privacy watchdog ordered DeepSeek to restrict access to its chatbot over concerns the firm violated EU data standards.
With tensions mounting, the Trump administration’s broader strategy to limit China’s technological growth has gained momentum.
Earlier this week, the White House extended Biden-era restrictions on Nvidia’s chip exports to China. The administration is now exploring whether DeepSeek’s services should be banned outright within the U.S.
As investigations continue, questions linger over DeepSeek’s methods and its role in China’s global AI ambitions — and whether American innovation inadvertently fueled its rise.
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