US Considers New Sanctions on China’s DeepSeek Over AI and Technology Access
The Trump administration is reportedly considering new punitive actions against China-based AI firm DeepSeek, such as limiting its access to US technologies and even barring US citizens from using its services, as per a report by The New York Times.
The action follows growing alarm over China's quick progress in artificial intelligence, fueled in part by its access to high-performance chips designed by US companies like Nvidia. The introduction of DeepSeek's low-cost AI models has set alarm bells ringing in the US tech industry and led to even more scrutiny by lawmakers.
Nvidia Sales Under Investigation
Central to the issue is Nvidia’s H20 AI chip, a product specifically designed to comply with US export controls. Despite these safeguards, the US House Select Committee on China has demanded answers from Nvidia regarding how its chips may have ended up powering DeepSeek’s AI models, possibly circumventing existing export restrictions.
According to Reuters, the US House Select Committee on China said in a report that "it has sent a formal letter to Nvidia demanding answers about sales to China and Southeast Asia to examine whether and how its chips ended up powering DeepSeek's AI models—despite US export restrictions.”
Recently, Nvidia revealed that the latest restrictions imposed by Washington could result in a $5.5 billion financial hit, as sales of its H20 chip to China are now curtailed indefinitely.
Also read: Nvidia Takes $5.5B Hit as US Bans H20 AI Chip Exports to China
Tightening Tech Restrictions on China
Since 2022, the US has taken a series of steps to deny China access to high-tech semiconductors on national security grounds.
The latest restrictions mark the Trump team's new approach to clmap down China's AI plans by going after chip sales and the wider digital sector.
