US Probes DeepSeek's Alleged Acquisition of Nvidia Chips via Singapore Firms

The US government is investigating whether Chinese AI startup DeepSeek circumvented export controls by acquiring advanced Nvidia chips through third-party companies in Singapore, according to a report by Bloomberg. The investigation, led by officials from the White House and the Federal Bureau of Investigation (FBI), aims to determine if DeepSeek used these chips to train its R1 chatbot, which has sparked a market disruption and raised questions about the future of AI development.



DeepSeek's R1 chatbot, released in late January 2025, has garnered significant attention and concern from US officials due to its impressive performance and low cost. The company claims that it developed the model using its -V3 LLM, which cost just $5.6 million and was trained on less advanced Nvidia H800 chips. However, OpenAI has disputed these claims, suggesting that DeepSeek used its models to help train the cheaper, more efficient -V3 model.



The alleged use of restricted Nvidia chips by DeepSeek has significant implications for the global AI chip supply chain, particularly in relation to Singapore's role as a transit point. If it is found that DeepSeek acquired these chips through unauthorized channels, it could lead to further restrictions on chip exports, affecting not just China but other countries as well. This could disrupt global supply chains and potentially escalate tensions between the US and China over AI and semiconductor technology.

The investigation also highlights the strategic importance of semiconductor supply chains and the ongoing battle for AI supremacy between the US and China. If DeepSeek has indeed found a way to develop advanced AI models using less powerful chips, it could accelerate China's AI development and challenge the US's dominance in the field. This could prompt the US to invest more in AI research and development to maintain its competitive edge.

In conclusion, the US investigation into DeepSeek's potential use of restricted AI chips has far-reaching implications for the global AI chip supply chain, the AI race between the US and China, and the broader semiconductor industry. The outcome of the investigation will be crucial in determining the future of AI development and the geopolitical dynamics surrounding it. As the investigation unfolds, the market will be closely watching the developments and their potential impact on the AI industry and international trade relations.