U.S. Congressional Investigation into DeepSeek and Nvidia Export Concerns

Overview

A U.S. congressional investigation is currently underway into allegations that Chinese artificial intelligence company, DeepSeek, has trained its language model using tens of thousands of Nvidia GPUs, many of which fall under the U.S. export restrictions. The suspected breach has led the House Select Committee on the CCP to send a formal letter to Nvidia, asking the company to provide comprehensive records amid concerns that these GPUs ended up with DeepSeek through Singapore despite such barriers.

Nvidia’s Response

Nvidia has denied any involvement in wrongdoing, stating that its clients may use Singaporean billing addresses even though the GPUs are intended for destinations other than China. “Our reported Singapore revenue indicates the billing address, often for subsidiaries of our U.S. customers,” Nvidia declared in a public statement. The associated products are typically shipped to other countries, including the United States and Taiwan, instead of China.

Investigative Findings

The investigation has revealed claims from SemiAnalysis that DeepSeek may have managed to acquire a sizeable number of Nvidia’s GPUs — at least 60,000, including 10,000 A100, 10,000 H100, 10,000 H800, and 30,000 H20 models. While the H800 and H20 units were designed specifically for the Chinese market post-export restrictions in 2022 and 2023, restrictions still apply to other high-performance chips. Authorities contend that DeepSeek could have accessed these restricted GPUs through third-party intermediaries, notably in Singapore.

Rising Concerns

Nvidia’s financial reports for FY 2023 and FY 2025 show a notable increase in shipments to Singapore, from 5% in mid-FY 2023 to 18% in FY 2025. This raise in shipments following export restrictions has fueled suspicions that Singapore may have been used as a transshipment hub for restricted GPUs destined for Chinese buyers like DeepSeek.

Legal Actions

In 2023, Singaporean authorities apprehended multiple individuals, including a Chinese national, involved in illegally channeling Nvidia GPUs to China. This event corroborates concerns that the current U.S. export control measures might be inadequate and that Nvidia hardware is still reaching unauthorized users.

Demands from Lawmakers

The House Select Committee’s probe requires a thorough list of Nvidia’s customers in China or ASEAN nations who acquired over 499 AI GPUs or accelerators since 2020. The list should detail customer names, types and quantities of GPUs purchased, transaction dates, and the stated final destinations to ascertain if Nvidia was aware of the GPUs’ final use.

Moreover, lawmakers want all communications between Nvidia and DeepSeek, alongside any contracts Nvidia signed with organizations under U.S. trade or security restrictions. Rep. John Moolenaar emphasized, “American innovation should never be the engine of our adversaries’ ambitions.”

Despite these allegations, Nvidia stands firm, asserting it abides by U.S. governmental directives regarding sales and destinations.

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