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https://www.straitstimes.com/busine...-got-nvidia-ai-chips-through-singapore-others
The US Commerce Department is looking into whether DeepSeek – the Chinese company whose AI model’s performance rocked the tech world – has been using US chips that are not allowed to be shipped to China, a person familiar with the matter said.
China’s DeepSeek last week launched a free assistant it says uses less data at a fraction of the cost of US models.
Within days, it became the most downloaded app in Apple’s App Store and stirred concerns about the United States’ lead in artificial intelligence, sparking a rout that wiped around US$1 trillion (S$1.35 trillion) off US technology stocks.
Current restrictions on Nvidia AI processors are meant to stop its most sophisticated chips from reaching China.
Organised AI chip smuggling to China has been tracked out of countries including Malaysia, Singapore and the United Arab Emirates, the source said.
The Commerce Department and DeepSeek did not immediately return requests for comment.
A Nvidia spokesman said its revenue from Singapore – which accounts for about 20 per cent of its total sales – does not suggest a diversion to China, according to a report in Investing.com on Nov 29.
Nvidia’s public filings report on the “bill to” locations of their customers, not the “ship to” locations. This implies that the company’s revenue figures are based on where their customers are billed, not where the products are ultimately shipped to, the spokesman said.
The spokesperson added that many of Nvidia’s customers have business entities in Singapore, which they use for products intended for the US and the West. This practice is common among companies operating in multiple countries and does not necessarily indicate that the products are being shipped to Singapore.
Nvidia also said it insists its business partners adhere to all relevant laws and will take appropriate action if it receives any information suggesting otherwise.
DeepSeek has said it used Nvidia’s H800 chips, which it could have legally purchased in 2023. Reuters could not determine whether DeepSeek has used other controlled chips that are not allowed to be shipped to China.
DeepSeek also apparently has Nvidia’s less powerful H20s, which can still lawfully be shipped to China. The US considered controlling them under the Biden administration and newly appointed Trump officials are discussing that as well.
The chief executive of AI company Anthropic, Mr Dario Amodei, said earlier this week, “it appears that a substantial fraction of DeepSeek‘s AI chip fleet consists of chips that haven’t been banned (but should be), chips that were shipped before they were banned; and some that seem very likely to have been smuggled”.
Two US lawmakers, who called on the Trump administration to curb exports of Nvidia’s H20 chips and those of similar sophistication, also urged tightening controls on shipments through third countries that pose a high risk of diversion, naming Singapore as an example.
In a letter to National Security Adviser Mike Waltz on Jan 29, Republican John Moolenaar and Democrat Raja Krishnamoorthi, who lead the House of Representatives Select Committee on China, said: “Countries like Singapore should be subject to strict licensing requirements absent a willingness to crack down on PRC transshipment through their territory.” REUTERS
The US Commerce Department is looking into whether DeepSeek – the Chinese company whose AI model’s performance rocked the tech world – has been using US chips that are not allowed to be shipped to China, a person familiar with the matter said.
China’s DeepSeek last week launched a free assistant it says uses less data at a fraction of the cost of US models.
Within days, it became the most downloaded app in Apple’s App Store and stirred concerns about the United States’ lead in artificial intelligence, sparking a rout that wiped around US$1 trillion (S$1.35 trillion) off US technology stocks.
Current restrictions on Nvidia AI processors are meant to stop its most sophisticated chips from reaching China.
Organised AI chip smuggling to China has been tracked out of countries including Malaysia, Singapore and the United Arab Emirates, the source said.
The Commerce Department and DeepSeek did not immediately return requests for comment.
A Nvidia spokesman said its revenue from Singapore – which accounts for about 20 per cent of its total sales – does not suggest a diversion to China, according to a report in Investing.com on Nov 29.
Nvidia’s public filings report on the “bill to” locations of their customers, not the “ship to” locations. This implies that the company’s revenue figures are based on where their customers are billed, not where the products are ultimately shipped to, the spokesman said.
The spokesperson added that many of Nvidia’s customers have business entities in Singapore, which they use for products intended for the US and the West. This practice is common among companies operating in multiple countries and does not necessarily indicate that the products are being shipped to Singapore.
Nvidia also said it insists its business partners adhere to all relevant laws and will take appropriate action if it receives any information suggesting otherwise.
DeepSeek has said it used Nvidia’s H800 chips, which it could have legally purchased in 2023. Reuters could not determine whether DeepSeek has used other controlled chips that are not allowed to be shipped to China.
DeepSeek also apparently has Nvidia’s less powerful H20s, which can still lawfully be shipped to China. The US considered controlling them under the Biden administration and newly appointed Trump officials are discussing that as well.
The chief executive of AI company Anthropic, Mr Dario Amodei, said earlier this week, “it appears that a substantial fraction of DeepSeek‘s AI chip fleet consists of chips that haven’t been banned (but should be), chips that were shipped before they were banned; and some that seem very likely to have been smuggled”.
Two US lawmakers, who called on the Trump administration to curb exports of Nvidia’s H20 chips and those of similar sophistication, also urged tightening controls on shipments through third countries that pose a high risk of diversion, naming Singapore as an example.
In a letter to National Security Adviser Mike Waltz on Jan 29, Republican John Moolenaar and Democrat Raja Krishnamoorthi, who lead the House of Representatives Select Committee on China, said: “Countries like Singapore should be subject to strict licensing requirements absent a willingness to crack down on PRC transshipment through their territory.” REUTERS
