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U.S. Alleges DeepSeek Aided Chinese Military, Circumvented Nvidia Chip Export Controls

The State Department asserts the company used Southeast Asian shell firms to obtain restricted Nvidia chips for China's defense and surveillance activities.

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 U.S. official told Reuters that DeepSeek has willingly supported China’s military and intelligence operations beyond open-source AI access.
  • Washington alleges the Hangzhou startup routed “large volumes” of Nvidia H100 GPUs through Southeast Asian shell companies to bypass export restrictions.
  • DeepSeek is referenced over 150 times in People’s Liberation Army procurement records and is accused of sharing user data with Beijing’s surveillance apparatus.
  • Nvidia denies any H100 shipments to DeepSeek, saying its review shows the firm relied solely on lawfully exported H800 GPUs.
  • Singapore charged three individuals over a fraud scheme linked to Nvidia chip transfers and Malaysia’s trade ministry has opened its own probe of Chinese-operated AI servers.