U.S. investigates China's DeepSeek for potential use of AI chips

The investigation focuses on whether DeepSeek acquired Nvidia chips, which are subject to export restrictions

We may earn a commission from links on this page.
Image for article titled U.S. investigates China's DeepSeek for potential use of AI chips
Photo: Dominika Zarzycka/NurPhoto (Getty Images)

This story incorporates reporting from  MediaNama, gadgets360 and NBC New York.

The U.S. government is reportedly investigating Chinese technology firm DeepSeek regarding its potential use of artificial intelligence chips that are restricted under current export control measures. DeepSeek, a company primarily involved in the development of AI-driven solutions, might have acquired Nvidia chips that are subject to limitations, sparking concerns over regulatory compliance.

The Commerce Department is said to be leading the probe, examining whether DeepSeek’s activities have violated U.S. export regulations. The department’s inquiry centers around how DeepSeek could have obtained the Nvidia AI chips—an advanced technology restricted due to its potential dual-use capabilities, which may pose national security risks if misused.

Advertisement

DeepSeek, in the spotlight for its AI prowess, faces increased scrutiny from U.S. authorities. In recent months, federal entities like NASA have already imposed restrictions on collaborating with DeepSeek, citing pressing security and privacy concerns. These developments suggest a growing caution within the U.S. government about the involvement of Chinese companies in sensitive technology sectors.

Advertisement

The suspicion aligns with broader geopolitical tensions between the U.S. and China, where technological advancement and control have become key battlegrounds. The U.S. has historically imposed stringent constraints on the export of advanced technologies, particularly those with military and defense applications, to China. With DeepSeek’s case, U.S. agencies seek to reaffirm their commitment to national security by enforcing these restrictions.

Advertisement

Nvidia, the maker of the AI chips in question, has reportedly cooperated with all regulatory and governmental inquiries. The Silicon Valley giant is no stranger to such scrutiny, having been instrumental in the AI chip market and often finding itself under international watch for its dual-use products. However, it remains unclear how DeepSeek might have accessed these chips despite the restrictions.

The Commerce Department’s findings can have significant implications not only for DeepSeek but potentially for broader trade relations. In recent years, U.S. export controls have been pivotal in shaping China’s technology landscape, impacting Chinese tech giants and startups alike. A ruling against DeepSeek could intensify these measures, potentially resulting in stricter controls and broader bans on technology transfers to Chinese entities.

Advertisement

For its part, DeepSeek has not publicly commented on the investigation, maintaining a low profile amid the growing controversy. Nor has there been any indication from the Chinese government regarding this development, even as such probes draw international attention to the competitive tech landscape between the two global powers.

As the investigation unfolds, industry watchers anticipate further actions that might dictate U.S. and China relations, especially in technology sectors. It also raises questions about the robustness of current export control mechanisms and their adaptability to rapidly evolving tech landscapes.

Advertisement

Quartz Intelligence Newsroom uses generative artificial intelligence to report on business trends. This is the first phase of an experimental new version of reporting. While we strive for accuracy and timeliness, due to the experimental nature of this technology we cannot guarantee that we’ll always be successful in that regard. If you see errors in this article, please let us know at qi@qz.com.