US reportedly investigating whether China's DeepSeek used restricted AI chips
Published On Jan 31, 2025, 12:55 PM
The U.S. Commerce Department is currently investigating whether Chinese AI startup DeepSeek has illegally accessed advanced Nvidia AI chips that are restricted from being sold to China. This scrutiny arises after DeepSeek released new AI models that allegedly rival those of leading U.S. tech firms. Reports indicate that DeepSeek might have obtained these restricted chips via third parties in Singapore, with suggestions of potential smuggling activities also being explored. Nvidia has stated that it insists partners comply with applicable laws relating to chip sales.
Stock Forecasts
NVDA
Negative
DeepSeek's advancements have raised concerns among U.S. tech firms regarding competition in the AI space. As investigations into illegal chip access unfold, there might be short-term volatility among companies like Nvidia and others in the semiconductor sector.
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