US Weighs Sanctions Against China’s DeepSeek Amid AI and Tech Concerns
WASHINGTON: The Trump administration is considering imposing penalties that could prevent Chinese AI company DeepSeek from accessing American technology and may also explore restricting U.S. users from utilizing its services, according to The New York Times.
DeepSeek, a rising force in China’s artificial intelligence sector, has disrupted the global AI landscape with its budget-friendly models. This development has drawn the attention of U.S. authorities, particularly due to the company’s ties with chipmaker Nvidia.
Washington has tightened its grip on AI-related exports, aiming to curtail China’s ability to acquire cutting-edge technologies. As part of this strategy, Nvidia’s AI chips have come under increasing scrutiny to prevent China from gaining an edge in the AI arms race.
Earlier this week, the administration escalated its efforts by introducing new limitations on Nvidia’s AI chip exports to China.
A recent report by the U.S. House Select Committee on China revealed that it has officially requested Nvidia clarify how its chips may have ended up supporting DeepSeek’s models, despite existing restrictions. The inquiry covers sales in China and Southeast Asia.
Nvidia has cautioned that the latest export restrictions, particularly those targeting its H20 AI chip, could result in a financial impact of $5.5 billion. The H20 ban marks another move by the Trump administration to limit China’s access to next-generation semiconductor technology.
Since 2022, the United States has enforced a ban on exporting Nvidia’s most powerful chips to China over national security concerns, fearing that such technology could bolster China’s military advancements.
Neither DeepSeek, the White House, nor the Commerce Department responded to Reuters’ requests for comment on the matter.
