US Investigates DeepSeek’s Use of Restricted AI Chips
Synopsis
China’s DeepSeek has stirred up the tech world with its recent AI developments, prompting the US to scrutinize its use of restricted chips.
China-based AI company DeepSeek made headlines last week with the launch of its groundbreaking free AI assistant. Touted for its efficiency, the tool reportedly operates with less data and at a fraction of the cost of its US counterparts. Within days, it became the most downloaded app on Apple’s App Store, raising alarms over the United States’ dominance in AI. The ripple effect was significant, wiping nearly $1 trillion from the valuation of US technology stocks.
The US Commerce Department is now investigating whether DeepSeek has accessed restricted Nvidia AI chips that are banned from being shipped to China. The inquiry highlights concerns over the potential misuse of advanced US technology, which could tilt the balance of power in AI innovation.
Current export controls aim to prevent Nvidia’s cutting-edge processors from reaching China. However, organized smuggling routes for these chips have been reportedly traced to countries like Malaysia, Singapore, and the UAE.
When asked for comments, both the Commerce Department and DeepSeek remained silent. Nvidia, a key player in AI chip manufacturing, noted that some customers operate through entities in Singapore, raising questions about compliance. “We require our partners to follow all applicable laws, and we act if any violations are identified,” Nvidia stated.
DeepSeek confirmed it has used Nvidia’s H800 chips, which were legally available for purchase in 2023. However, it remains unclear whether the company accessed other restricted chips. Reports suggest DeepSeek may also use Nvidia’s less powerful H20 chips, which are still permitted for shipment to China, although discussions about restricting them are ongoing under the Biden administration.
Dario Amodei, CEO of AI firm Anthropic, commented, “A significant portion of DeepSeek’s chip fleet seems to consist of unbanned chips, pre-ban shipments, and potentially smuggled hardware.”
The US has intensified its efforts to curb AI chip exports to China and is reportedly planning to impose similar restrictions on other nations.
