The Trump administration is considering imposing new restrictions on Chinese AI lab DeepSeek, potentially limiting its access to Nvidia’s AI chips and barring Americans from using its AI services, according to a report by The New York Times. This move is part of the administration’s broader effort to compete with China in the field of artificial intelligence.
DeepSeek has gained popularity among U.S. AI developers due to its competitive pricing, prompting Silicon Valley to offer frontier AI models at lower costs. However, there are concerns about whether DeepSeek engaged in intellectual property theft to develop its models. OpenAI has alleged that DeepSeek distilled its models, violating OpenAI’s terms of use.
The administration’s actions follow the launch of DeepSeek’s low-cost AI model, which has disrupted the global AI landscape. U.S. officials are particularly concerned about DeepSeek’s use of Nvidia’s advanced AI chips, which are now under tighter U.S. export controls. These measures aim to curtail China’s ability to access high-end semiconductors that could enhance its military capabilities.
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In response to these developments, the U.S. House Select Committee on China has formally inquired with Nvidia about its sales to China and Southeast Asia, to determine if its chips are being used in DeepSeek models despite existing restrictions. Nvidia warned that limits on its H20 AI chip exports to China could result in a $5.5 billion revenue loss, highlighting the economic impact of the technology control measures.
Since 2022, the U.S. has banned exports of Nvidia’s most advanced chips to China. DeepSeek, the White House, and the Commerce Department have not yet commented on these developments.
