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U.S. Accuses DeepSeek of Bolstering Chinese Military and Evading Nvidia Chip Restrictions

A senior State Department official said the firm tapped Southeast Asian shell companies to obtain restricted Nvidia H100 GPUs in support of PLA intelligence operations.

Deepseek logo is seen in this illustration taken January 27, 2025. REUTERS/Dado Ruvic/Illustration
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The Deepseek logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • A senior State Department official told Reuters that DeepSeek has provided and is likely to continue providing support to China’s military and intelligence agencies through its AI services to PLA research institutions.
  • The official alleged DeepSeek used shell companies in Southeast Asia and pursued remote access to foreign data centers to bypass U.S. export controls on high-end semiconductors.
  • U.S. authorities contend DeepSeek holds large volumes of Nvidia H100 chips under export restriction, while Nvidia insists the startup acquired only legally exportable H800 products.
  • DeepSeek is referenced over 150 times in People’s Liberation Army procurement records and other Chinese defense industrial base documents, according to the U.S. assessment.
  • Singapore has charged three men for allegedly routing advanced Nvidia chips to DeepSeek and Malaysia’s trade ministry is probing potential breaches of local export regulations.