The Trump administration is considering penalties that would block China’s DeepSeek from buying US technology and limit Americans’ access to its services, according to a report by the New York Times. The launch of DeepSeek, a low-cost AI model, has raised concerns about the Chinese start-up’s ties to Nvidia, a key player in US export controls.
Nvidia’s AI chips are restricted exports due to US efforts to prevent China from gaining access to advanced semiconductor technologies. The US House Select Committee on China has demanded answers from Nvidia about its sales to China and Southeast Asia, despite US export restrictions.
A recent restriction by the US on Nvidia’s H20 AI chip shipments to China has been seen as a major blow to DeepSeek, with potential losses estimated at $5.5 billion. This move is part of the Trump administration’s efforts to limit China’s access to advanced semiconductors, particularly those related to military capabilities.
The Commerce Department and White House have yet to comment on the matter, but the US has banned exports of Nvidia’s most advanced chips to China since 2022, citing national security concerns.
Source: https://www.investing.com/news/stock-market-news/us-mulls-penalties-to-block-deepseek-from-buying-american-technology-nyt-reports-3989148