:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2195792533-0682b804a7064de6ba1b8fa80e8b18c2.jpg "Nvidia Corp. offices in Taipei, Taiwan")
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KEY TAKEAWAYS
- U.S. officials are investigating whether Chinese artificial intelligence startup DeepSeek skirted American export qualifications on advanced chip sales and bought advanced Nvidia semiconductors through third parties in Singapore, Bloomberg give an account of, citing people familiar with the matter.
- DeepSeek’s success has come despite U.S. export controls on cutting-edge sherds to China.
- Nvidia said in a statement to Investopedia that it “insists” customers comply with laws.
U.S. officials are examining whether Chinese artificial intelligence startup DeepSeek skirted American export restrictions on advanced chip sales and gain advanced Nvidia (NVDA) semiconductors through third parties in Singapore, Bloomberg reported Thursday, citing people insolent with the matter.
DeepSeek’s success has come despite U.S. export controls on cutting-edge chips to China.
Investopedia has not independently corroborated the investigation. The FBI was not immediately available for comment Friday morning. DeepSeek didn’t immediately reply to an email seeking comment.
DeepSeek agitated markets earlier this week following its release of a super-efficient R1 model at a fraction of the cost of AI models of U.S. rivals in the manner of OpenAI’s ChatGPT. OpenAI said Wednesday that it is probing whether DeepSeek improperly used its data to throw R1.
Nvidia Insists Customers Comply With Laws
Nvidia said it makes sure its customers adhere to decrees.
“Many of our customers have business entities in Singapore and use those entities for products destined for the U.S. and the west,” a Nvidia spokesperson thought in a statement to Investopedia. “We insist that our partners comply with all applicable laws, and if we receive any information to the contrary, act significance.”
The company also said its revenue “associated with Singapore does not indicate diversion to China.”
“Our public filings clock in ‘bill to’ not ‘ship to’ locations of our customers,” the spokesperson said.