China’s DeepSeek accused of using banned chips, Nvidia denies it
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China’s DeepSeek faces accusations of training its AI model with banned Blackwell AI chips, though Nvidia says it has found no such evidence. According to The Information, DeepSeek obtained Nvidia Corp. Blackwell chips through smuggling routes directly from countries that are allowed to purchase the chips. Sources told the Information that computer servers holding the chips were disassembled before entering China. DeepSeek has not responded to requests for comment on the allegations. The company grabbed worldwide attention in January after introducing an AI system that matched the performance of top American technology while costing far less to develop. High-Flyer, a Chinese investment firm, provides financial backing for DeepSeek and had purchased 10,000 Nvidia graphics processing units in 2021, before Washington banned sales of advanced Nvidia chips and similar hardware to China. President Donald Trump gave Nvidia approval earlier this week to send an older chip model, the H200, to China. However, restrictions on the newer Blackwell chips remain active. DeepSeek put out a fresh model in September and said it was partnering with Chinese chip manufacturers on the project. Nvidia disputes smuggling claims On Wednesday, Nvidia challenged the smuggling claims about DeepSeek and its use of Blackwell technology. American officials have blocked Blackwell chip exports to China, viewing them as Nvidia’s most sophisticated products, in an attempt to maintain an edge in artificial intelligence development. The Information reported that DeepSeek acquired chips that entered the country illegally. A Nvidia representative issued a statement saying the company has not discovered any confirmation of hidden data facilities built to mislead Nvidia and its manufacturing partners, then torn down, moved secretly, and reassembled elsewhere. The spokesperson added that while such smuggling appears unlikely, the company investigates every tip it gets. “We haven’t seen any substantiation or received tips of ‘phantom datacenters’ constructed to…
Filed under: News - @ December 10, 2025 5:28 pm