• About BreezyScroll
  • Privacy & Policy
  • Contact Us
Thursday, May 8, 2025
BreezyScroll
ADVERTISEMENT
  • Home
  • Breezy Stories
  • Technology
  • Gaming
  • Entertainment
  • Lifestyle
  • World
  • Money
  • Sports
  • Breezy Explainer
No Result
View All Result
  • Home
  • Breezy Stories
  • Technology
  • Gaming
  • Entertainment
  • Lifestyle
  • World
  • Money
  • Sports
  • Breezy Explainer
No Result
View All Result
BreezyScroll
No Result
View All Result

Home  /  Technology  /  DeepSeek AI under investigation for alleged purchase of banned Nvidia chips

DeepSeek AI under investigation for alleged purchase of banned Nvidia chips

by Siddhi Vinayak Misra
January 31, 2025
in Technology, The US, World
Reading Time: 3 mins read
DeepSeek AI under investigation for alleged purchase of banned Nvidia chips

AI startup faces scrutiny amid U.S. government probe

DeepSeek AI is currently under investigation by U.S. officials over allegations that the company acquired banned Nvidia chips through third-party sellers. The probe follows DeepSeek’s recent announcement of a cost-effective AI solution that disrupted the stock market, sparking concerns about China’s advancement in artificial intelligence.

ADVERTISEMENT

U.S. officials scrutinize DeepSeek’s Nvidia chip acquisition

According to Bloomberg, American authorities are investigating whether DeepSeek circumvented export restrictions to obtain Nvidia’s high-powered AI chips, which have been banned from sale in China. Sources indicate that the AI firm may have acquired these chips through unofficial channels, raising concerns about potential national security risks.

Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, addressed the issue during his Senate confirmation hearing. “Nvidia’s chips, which they bought tons of, and they found their ways around it, drive their DeepSeek model,” Lutnick stated. “It’s got to end. If they are going to compete with us, let them compete, but stop using our tools to compete with us. So I’m going to be very strong on that.”

Market impact and political ramifications

The controversy has had significant financial implications. Nvidia’s stock plummeted earlier this week following DeepSeek’s AI product launch. The timing of this development coincided with former House Speaker Nancy Pelosi selling a substantial portion of her Nvidia shares, leading to further speculation about market movements.

ADVERTISEMENT

The American government has consistently sought to limit China’s access to advanced AI technology, requiring the development of domestic alternatives. DeepSeek reportedly built its models using Nvidia’s H800 chips, which were initially designed to comply with export regulations but were later banned in October 2023. This led Nvidia to introduce the H20 chip, a lower-capability alternative tailored to meet updated U.S. restrictions.

Official responses and corporate statements

Nvidia responded to the allegations with a statement emphasizing compliance. “We insist that our partners comply with all applicable laws, and if we receive any information to the contrary, act accordingly.”

The Department of Commerce has yet to comment on potential consequences for DeepSeek. However, with the Trump administration’s firm stance on restricting China’s technological advancements, experts anticipate stringent measures that could impact AI startups operating in international markets.

Uncertain future for DeepSeek AI

As the investigation unfolds, DeepSeek AI faces mounting scrutiny over its procurement practices. The company’s ability to navigate regulatory challenges will determine its future in the AI industry. Meanwhile, the case underscores the broader geopolitical tensions between the U.S. and China in the race for AI supremacy.

Tags: DeepSeek AINvidia
ShareTweetShareSend
ADVERTISEMENT
ADVERTISEMENT

Recent Articles

Who is Colonel Sofiya Qureshi? Officer at the forefront of Operation Sindoor briefing: A powerful symbol of leadership and inclusion

Who is Colonel Sofiya Qureshi? Officer at the forefront of Operation Sindoor briefing: A powerful symbol of leadership and inclusion

May 7, 2025
Nation on alert: India conducts massive civil defense drills amid Operation Sindoor strikes

Nation on alert: India conducts massive civil defense drills amid Operation Sindoor strikes

May 7, 2025
Earth’s expiration date? Scientists predict the exact year life will cease on our planet

Earth’s expiration date? Scientists predict the exact year life will cease on our planet

May 7, 2025
Sound waves could be the future of weight loss, research suggests

Sound waves could be the future of weight loss, research suggests

May 7, 2025
BreezyScroll Logo

BreezyScroll is a global content platform that provides a unique experience of enhancing the knowledge quotient for its audience by providing the latest news and updates from various categories such as politics, sports, entertainment, technology, and more.
The platform aims to provide a concise and easy-to-read format for its users. BreezyScroll covers news stories from around the world, majorly the United States. The platform was launched in 2021 and has become one of the fastest-growing content companies in the US.

Follow Us

Browse by Category

  • Africa
  • Animals
  • Asia
  • Athletics
  • Australia
  • Auto
  • Basketball
  • Bollywood
  • Brand
  • Breezy Explainer
  • Breezy Feature
  • Breezy Soul
  • Business
  • Canada
  • Chess
  • China
  • Coronavirus
  • Cricket
  • Education
  • Entertainment
  • Environment
  • EPL
  • Europe
  • Exclusive Interview
  • Exclusive Review
  • Football
  • Gaming
  • Health
  • Hollywood
  • India
  • International
  • K Pop
  • Law
  • Lifestyle
  • Middle East
  • Money
  • NFL
  • North America
  • OTT
  • Paris Olympics
  • Pets
  • Press Releases
  • Russia
  • Science
  • South America
  • Space
  • Sports
  • Startup
  • Technology
  • Tennis
  • Tennis
  • The Achievers
  • The US
  • Travel
  • UK
  • UK
  • Uncategorized
  • World
  • WWE

Trending Topics

Afghanistan AI Apple Australia Biden California Canada China Climate Change Coronavirus COVID-19 Donald Trump Elon Musk Featured Florida Google IPL Japan Joe Biden Mars Meta Moon NASA NBA Netflix New York North Korea Ohio Omicron Putin Queen Elizabeth II Russia Russia-Ukraine crisis South Korea SpaceX Taliban Tesla Texas TikTok Trump Twitter UK Ukraine USA Virat Kohli

No Result
View All Result
  • About BreezyScroll
  • Privacy & Policy
  • Contact Us

© 2024 · BreezyScroll.com

No Result
View All Result
  • Home
  • Breezy Stories
  • Technology
  • Gaming
  • Entertainment
  • Lifestyle
  • World
  • Money
  • Sports
  • Breezy Explainer

© 2024 · BreezyScroll.com

Go to mobile version