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Chinese AI startup DeepSeek is reportedly preparing to release a new artificial intelligence model trained on Nvidia’s most advanced AI chip, the Blackwell, raising serious concerns about potential violations of U.S. export controls. A senior Trump administration official said Monday that U.S. authorities believe DeepSeek obtained and used Blackwell chips despite strict restrictions barring shipments of the high-performance semiconductors to China.
According to the official, there are indications that DeepSeek may attempt to remove technical markers that could reveal the use of American-made AI chips. While details on how the information was obtained remain undisclosed, U.S. policy clearly prohibits shipping Nvidia Blackwell processors to China. If confirmed, DeepSeek’s possession of these advanced AI semiconductors could represent a breach of U.S. trade regulations overseen by the Commerce Department.
Nvidia declined to comment, while China’s embassy in Washington criticized what it described as the politicization of technology and trade issues under the banner of national security. The Commerce Department and DeepSeek have not responded publicly.
The development intensifies debate in Washington over AI chip export restrictions. China hawks argue that advanced chips like Blackwell could strengthen China’s military capabilities and accelerate its AI ambitions, threatening U.S. technological dominance. Meanwhile, some industry leaders, including Nvidia CEO Jensen Huang and White House AI adviser David Sacks, have suggested that allowing limited chip sales could slow Chinese firms such as Huawei from closing the technology gap.
Current export controls block Blackwell sales to China. Although President Donald Trump previously considered permitting a scaled-down version for Chinese buyers, he later reversed course. A December decision to allow sales of Nvidia’s H200 chips—its second most advanced processors—also faced criticism and remains stalled.
DeepSeek, based in Hangzhou, previously shook global markets with competitive AI models. Officials now claim its latest system may also rely on model distillation techniques involving leading U.S. AI companies, further complicating the geopolitical battle over advanced AI technology.
