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DeepSeek Faces Global Investigations Over China Military Ties and US Chip Embargo Breach

Inquiries in Singapore coupled with a probe in Malaysia follow allegations of data transfers to Beijing alongside shell firms skirting US chip export controls.

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Overview

  • US officials allege DeepSeek actively supports China’s military and intelligence services by sharing user data and statistics with state authorities.
  • DeepSeek is accused of using Southeast Asian shell firms to procure Nvidia H100 processors despite the US embargo, though Nvidia maintains it only supplies the company with legal H800 chips and does not support export-control violations.
  • Singapore has prosecuted three individuals for allegedly transferring high-end Nvidia chips to DeepSeek through local networks.
  • Malaysia is probing whether DeepSeek’s use of foreign data centers to run US-restricted processors breaches export regulations.
  • DeepSeek’s R1 model, released under an MIT license and outperforming rivals in reasoning and mathematics tests, has driven rapid adoption and intensified scrutiny of its privacy and security practices.