Chinese AI startup DeepSeek is reported to be developing its next-generation AI model using Nvidia chips banned by the U.S. for export to China.

U.S. media outlets reported that DeepSeek, a Chinese artificial intelligence startup, relies on Nvidia chips prohibited by the U.S. for export to China to develop its new-generation AI models.

According to Bloomberg, U.S. technology news outlet The Information cited anonymous sources on Wednesday (December 10) as stating that Nvidia's Blackwell chips were smuggled into China via countries where sales of such chips are permitted.

Specifically, the report noted that DeepSeek uses chips installed in data centers located in undisclosed countries; these chips are disassembled and shipped to China after passing inspections by server equipment developers.The U.S. ban on exporting such advanced semiconductors to China has forced Chinese AI technology developers to obtain such hardware through means including overseas data centers.

In November, U.S. federal prosecutors charged two Chinese citizens and two U.S. citizens with orchestrating the shipment of millions of U.S. dollars' worth of high-end Nvidia chips to China, in violation of national security export restrictions. (One million U.S. dollars is equivalent to 1.31 million Singapore dollars.)

The U.S. Department of Justice charged two Chinese men on Monday (the 8th) with smuggling Nvidia H100 and H200 chips into China.

Representatives of DeepSeek did not immediately respond to Bloomberg's request for comment.

In a statement, a Nvidia spokesperson said the company has "found no substantive evidence or received any tips" indicating the existence of the activities described by The Information. "Such smuggling attempts appear preposterous, and we will pursue accountability vigorously should any relevant tips come to light."

DeepSeek emerged onto the scene in January this year, with its developed AI models capturing global attention. The company disclosed that its AI models are built at a far lower cost than those developed by Silicon Valley tech firms, while boasting computing power comparable to the best products from Silicon Valley counterparts.

U.S. President Donald Trump announced on Monday his approval of Nvidia's export of H200 AI chips to China, with a 25% revenue share to be levied on sales. However, Nvidia's Blackwell chips remain prohibited from being sold to China.

Against the backdrop of the ongoing China-U.S. tech war, Beijing is actively encouraging Chinese tech firms to develop AI products based on domestic semiconductors. DeepSeek released its new-generation model in September, stating that it had collaborated with chip manufacturers in the model's research and development.

Chinese AI startup DeepSeek is reported to be developing its next-generation AI model using Nvidia chips banned by the U.S. for export to China.

U.S. media outlets reported that DeepSeek, a Chinese artificial intelligence startup, relies on Nvidia chips prohibited by the U.S. for export to China to develop its new-generation AI models.

According to Bloomberg, U.S. technology news outlet The Information cited anonymous sources on Wednesday (December 10) as stating that Nvidia's Blackwell chips were smuggled into China via countries where sales of such chips are permitted.

Specifically, the report noted that DeepSeek uses chips installed in data centers located in undisclosed countries; these chips are disassembled and shipped to China after passing inspections by server equipment developers.The U.S. ban on exporting such advanced semiconductors to China has forced Chinese AI technology developers to obtain such hardware through means including overseas data centers.

In November, U.S. federal prosecutors charged two Chinese citizens and two U.S. citizens with orchestrating the shipment of millions of U.S. dollars' worth of high-end Nvidia chips to China, in violation of national security export restrictions. (One million U.S. dollars is equivalent to 1.31 million Singapore dollars.)

The U.S. Department of Justice charged two Chinese men on Monday (the 8th) with smuggling Nvidia H100 and H200 chips into China.

Representatives of DeepSeek did not immediately respond to Bloomberg's request for comment.

In a statement, a Nvidia spokesperson said the company has "found no substantive evidence or received any tips" indicating the existence of the activities described by The Information. "Such smuggling attempts appear preposterous, and we will pursue accountability vigorously should any relevant tips come to light."

DeepSeek emerged onto the scene in January this year, with its developed AI models capturing global attention. The company disclosed that its AI models are built at a far lower cost than those developed by Silicon Valley tech firms, while boasting computing power comparable to the best products from Silicon Valley counterparts.

U.S. President Donald Trump announced on Monday his approval of Nvidia's export of H200 AI chips to China, with a 25% revenue share to be levied on sales. However, Nvidia's Blackwell chips remain prohibited from being sold to China.

Against the backdrop of the ongoing China-U.S. tech war, Beijing is actively encouraging Chinese tech firms to develop AI products based on domestic semiconductors. DeepSeek released its new-generation model in September, stating that it had collaborated with chip manufacturers in the model's research and development.