The US government is investigating whether Singapore played a role in supplying NVIDIA’s AI chips to China. Authorities are probing whether Chinese AI firm DeepSeek acquired these chips through intermediaries, bypassing strict US export restrictions designed to limit China’s access to advanced AI technology.

Despite these controls, Chinese companies continue to obtain NVIDIA’s high-performance processors. Bloomberg reports that Singapore has drawn attention due to a sharp increase in NVIDIA chip imports, with sales surging by 740% since DeepSeek was founded. Given Singapore’s relatively small AI industry, this sudden growth has raised concerns about a possible trade loophole.

NVIDIA has acknowledged that its billing location may not always reflect the actual end-user location. This admission suggests that some chip exports might have found their way to China despite the restrictions. Furthermore, reports indicate that China has imported more AI chips from Singapore than from the US, despite Singapore only having 99 data centers. The scale of these imports has alarmed US officials, who are now considering further action.

DeepSeek reportedly possesses around 10,000 H800 AI GPUs and 10,000 H100 AI chips, which are among NVIDIA’s most powerful processors. This suggests that China is still acquiring cutting-edge AI hardware, potentially undermining US efforts to control access to such technology.

Singapore is not the only country under scrutiny. The Philippines has also been mentioned as a possible intermediary for chip shipments to China. As the US expands its investigation, further trade restrictions could be introduced to close any discovered loopholes.

If it is confirmed that Singapore facilitated these exports, the consequences could be significant. NVIDIA’s AI business accounts for 20% of its total revenue, and any new restrictions could impact its sales. Stricter trade enforcement may also disrupt AI supply chains, affecting the broader market.

SOURCE: WCCFTECH | PHOTO: BLOOMBERG

This article was created with AI assistance.