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Chinese AI firm DeepSeek reportedly using shell companies to evade U.S. chip restrictions in deal with Nvidia, but Nvidia denies claim

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  • 🇨🇳 Chinese AI firm DeepSeek reportedly using shell companies to evade U.S. chip restrictions in deal with Nvidia, but Nvidia denies claim

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A new report claims that Chinese AI juggernaut DeepSeek is helping China's military and intelligence operations, and may have even used shell companies to help procure Nvidia chips that are otherwise covered by export restrictions that prevent their sale to China, according to Reuters.

A senior State Department official told Reuters that DeepSeek was using workarounds to get access to advanced Nvidia chips, evading export controls. It is claimed DeepSeek has access to "large volumes" of Nvidia's H100 chip, which has been covered by Washington export restrictions since 2022.

The news is a continuing sign that Chinese companies are trying their level best to skirt U.S. export restrictions to get their hands on Nvidia's coveted hardware. It follows reports of Chinese companies flying hard drives to Malaysia in suitcases to try and train AI models using Nvidia hardware in rented servers, a phenomenon Malaysia is now investigating. Read more

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