Chinese AI startup accused of using banned Nvidia chips despite US export restrictions
A growing scandal is putting renewed pressure on US export controls after reports revealed that Chinese artificial intelligence company DeepSeek is using Nvidia’s most advanced processors, despite a ban on their export to China.
According to a detailed investigation by The Information, DeepSeek allegedly obtained thousands of Nvidia’s Blackwell chips technologies restricted under Washington’s current trade rules to power the training of its next-generation AI model. Sources familiar with the matter claimed the chips reached DeepSeek through a network of intermediaries operating in countries permitted to receive Nvidia hardware. The chips were reportedly shipped to data centers outside China, dismantled, and then reassembled within the country.
The disclosure comes shortly after President Donald Trump reaffirmed that only older Nvidia models such as the H200 would be authorized for sale to Chinese firms, while the Blackwell series remains prohibited. He emphasized that the United States would “reserve the most advanced chips” to maintain its lead in global AI innovation.
U.S. export rules under new scrutiny
The case raises questions about the durability and enforcement capacity of US export controls. Washington’s restrictions aim to curb China’s ability to develop frontier AI systems, but illicit trade networks appear to be challenging that goal.
Experts noted that access to Nvidia’s latest processors provides DeepSeek with a significant advantage as the country seeks to compete in high-performance AI computing. Chinese-designed chips, while improving, still lag behind US hardware for training large-scale models, according to industry sources.
Nvidia has not issued a formal response to the new claims but maintains that it conducts strict partner vetting and supports American national interests in technology leadership.
Meanwhile, the U.S. Department of Commerce and the Justice Department are expanding investigations into chip smuggling cases. Earlier this week, American prosecutors charged two Chinese citizens for illegally transporting millions of dollars’ worth of restricted Nvidia processors, while a Texas-based firm admitted guilt in a separate export violation.
Analysts say the DeepSeek revelations could prompt Washington to tighten oversight even further while pressuring allied nations to monitor re-export activity more closely. The incident underlines the growing difficulty of enforcing technology boundaries in a globalized, high-demand semiconductor market.
-
09:52
-
09:50
-
09:20
-
08:50
-
08:20
-
07:50
-
20:32
-
16:40
-
16:20
-
16:00
-
15:40
-
15:20
-
15:00
-
14:40
-
14:20
-
14:00
-
13:30
-
13:00
-
11:40
-
11:20
-
11:00
-
10:40
-
10:20
