U.S. Considers Ban on Chinese AI Firm DeepSeek Amid Tech Concerns

The U.S. government is considering a ban on Chinese artificial intelligence company DeepSeek, as part of a broader effort to curb China's technological advancements in AI. This move comes amid growing concerns that China may be gaining an edge in AI capabilities, potentially outpacing the U.S. in this critical field.

According to sources familiar with the discussions, the Trump administration is exploring penalties that could block DeepSeek's access to U.S. technology and potentially restrict American users from accessing its services. This development follows the release of DeepSeek-V3, a powerful open-source chatbot that has raised alarm bells in Washington due to its performance and affordability. The chatbot was reportedly trained for just $6 million, a fraction of the cost typically incurred by U.S. competitors like OpenAI.

The U.S. Select Committee on the Chinese Communist Party published a report on April 16, accusing DeepSeek of covertly funneling American user data to the CCP, manipulating information to align with CCP propaganda, and training its model using material unlawfully obtained from U.S. AI models. The report also suggested that DeepSeek may have trained its model using roughly 60,000 Nvidia chips, including 20,000 restricted under export controls, raising concerns about unauthorized channels of U.S. technology reaching Chinese developers.

This escalation in tensions comes as trade disputes between the U.S. and China intensify. The U.S. has imposed tariffs on Chinese goods of up to 145% and tightened export controls on advanced technologies, particularly in artificial intelligence and semiconductors, to curb Beijing’s rise. In response, China has raised tariffs on American imports to as high as 125%, deepening the economic divide between the two nations.

In February, Singaporean authorities arrested three individuals accused of exporting advanced Nvidia chips, which domestic media have claimed were done on behalf of DeepSeek. The committee is also investigating Nvidia’s sales across Asia, probing whether the company supplied DeepSeek with critical hardware in violation of U.S. rules. Committee Chairman John Moolenaar (R-MI) stated, "We now know this tool exploited U.S. AI models and reportedly used advanced Nvidia chips that should never have ended up in CCP hands. That’s why we’re sending a letter to Nvidia to demand answers. American innovation should never be the engine of our adversaries’ ambitions."

The committee has requested details on every customer in 11 Asian countries who bought more than 499 AI chips since 2020, including buyers in Malaysia and Singapore, as well as any communications between Nvidia and DeepSeek. In response, a spokesperson for Nvidia asserted that the company has adhered to the U.S. government’s instructions on where it can buy and sell products. "The technology industry supports America when it exports to well-known companies worldwide — if the government felt otherwise, it would instruct us," Nvidia said. The company also noted that its reported Singapore revenue indicates the billing address, often for subsidiaries of its U.S. customers, and that the associated products are shipped to other locations, including the United States, not to China.

DeepSeek’s rapid ascent has also drawn regulatory scrutiny from other regions. In January, Italy’s data protection authority ordered the company to block access to its chatbot over privacy concerns, accusing DeepSeek of failing to meet European data standards. France, South Korea, and Ireland have since indicated their own investigations into the firm’s data collection practices. DeepSeek did not immediately respond to a request for comment.