US reportedly investigating whether China’s DeepSeek used restricted AI chips [Video]

U.S. officials are investigating whether Chinese artificial intelligence (AI) startup DeepSeek, whose latest models sent the tech world into a frenzy this week, has been using advanced Nvidia semiconductors that are restricted from being shipped to China, according to multiple reports.

DeepSeek’s release of new AI models that it claims rival those made by leading U.S. tech firms but at a fraction of the cost roiled markets on Monday and prompted concerns about American firms losing their edge in the AI race to Chinese rivals.

Reuters reported that, according to a person familiar, the Commerce Department is now probing whether DeepSeek was able to access AI chips that the U.S. has banned from Chinese access, adding that chip smuggling to China has been tracked out of countries including Malaysia, Singapore and the United Arab Emirates.

Bloomberg also reported that the department is investigating whether DeepSeek was able to access high-performance Nvidia chips through third parties in Singapore.

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