Introduction:
A US House committee is investigating whether Nvidia, the world’s leading AI chipmaker, allowed China’s DeepSeek to access restricted chips. Lawmakers claim these chips, which are essential for training AI models, could pose a serious national security threat.
The investigation intensifies the ongoing scrutiny of US-China tech relations and raises questions about Nvidia’s compliance with export controls.
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5 Key Points to Know About the Nvidia-DeepSeek Probe
Nvidia faces questions about selling restricted chips to China.
DeepSeek’s AI breakthroughs shook the tech market, drawing major attention.
Lawmakers warn DeepSeek could be a tool for Chinese espionage.
Nvidia denies any wrongdoing, stating it follows export rules.
The US has ramped up export controls on Chinese access to AI technology.
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Background: US Export Controls and the AI Arms Race
Over the past few years, the US government has introduced strict export controls to prevent China from gaining access to advanced technologies like AI chips.
These measures aim to limit China’s military and surveillance capabilities by restricting its access to high-end semiconductor technologies, which power next-generation artificial intelligence models.
Nvidia has long maintained that it follows these export guidelines to the letter. However, recent developments have raised concerns about whether some of its chips made it into Chinese hands. The controversy is especially high-stakes as the US and China compete fiercely for global dominance in AI.
https://www.yolegroup.com/product/report/overview-of-the-semiconductor-devices-industry-h1-2025
The Allegations: DeepSeek’s Use of Restricted Nvidia Chips
The House Select Committee on the Chinese Communist Party (CCP) recently launched an investigation into whether DeepSeek, a Chinese AI company, used Nvidia’s advanced chips that are supposed to be restricted from export to China. Lawmakers suggest DeepSeek is using these chips to develop AI systems that could undermine US national security.
“DeepSeek is a weapon in the Chinese Communist Party’s arsenal,” said John Moolenaar, the Republican chair of the committee. “It is designed to spy on Americans, steal our technology, and subvert US law.”
The committee’s report alleges that DeepSeek has trained its AI models using Nvidia’s H800 chips — which were specially designed for China to comply with US export controls. These chips, however, were blocked by the Biden administration in 2023, making them ineligible for use by Chinese firms.
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DeepSeek’s Impact on the Tech Market
DeepSeek’s rise to prominence came earlier in 2025 when it unveiled its “R1” AI model. This model, trained on Nvidia’s chips, was said to rival the most advanced AI systems from the likes of OpenAI and Google DeepMind.
What was more alarming to investors was how DeepSeek achieved these breakthroughs at a fraction of the cost and using far less computing power.
When DeepSeek’s innovations became public, Nvidia’s stock took a major hit, wiping off about $600 billion from its market valuation in a matter of days.
The tech world began to question whether China had found a way to leapfrog the US in the AI race.
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Nvidia Responds: Denies Any Wrongdoing
In response to the allegations, Nvidia has firmly denied any wrongdoing. The company issued a statement saying it has always complied with US export rules, stating:
“We follow the government’s directions on where we can or cannot sell chips to the letter.”
Nvidia also pointed out the complexities of its global supply chain, involving partners like Dell and Supermicro. These companies package Nvidia’s chips into servers and sell them to customers worldwide.
Nvidia clarified that while its revenue includes sales to companies in Singapore — a region with a large presence of US tech subsidiaries — the chips are not intended for export to China.
Congressional Concerns: DeepSeek’s Alleged Connections to China’s Military
The House report raises more concerns than just chip access. It warns about DeepSeek’s ties to China’s surveillance network. Lawmakers say DeepSeek sends user data through China Mobile. This telecom firm has strong links to China’s military.
The report also says DeepSeek uses tracking tools from ByteDance, Baidu, and Tencent. These companies are major players in China’s tech sector.
Lawmakers fear this could give China access to sensitive U.S. data. That would increase national security risks. The U.S. has warned about China’s use of AI for spying and control. These practices could harm global privacy and data security.
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China’s Response: Rejecting US Allegations
In response to the accusations, the Chinese embassy in Washington dismissed the House report as “groundless.” Spokesperson Liu Pengyu argued that China prioritizes data privacy and security and has never forced companies to collect or store data illegally.
“The Chinese government attaches great importance to data privacy and security,” Liu said. “It has never required, nor will it require, companies or individuals to illegally collect or store data.”
China’s official stance is that the US is politicizing technology issues and stretching the concept of national security to undermine its economic interests.
Conclusion: The Future of AI and Export Controls
The investigation into Nvidia’s alleged involvement with DeepSeek shines a spotlight on the broader geopolitical battle between the US and China over AI technology. As both countries vie for dominance in AI, tensions are likely to rise. Nvidia, caught in the crossfire, will likely face more scrutiny from US lawmakers.
How this investigation unfolds could shape future policies regarding tech exports, supply chains, and global collaboration in the AI industry. While Nvidia has denied any wrongdoing, the growing concerns over China’s access to advanced technology could lead to even stricter export controls and potentially reshape the global semiconductor landscape.
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