The U.S. government has imposed strict export restrictions on Nvidia’s most advanced AI processors, particularly the H100 GPU, barring their sale to Chinese companies.

These measures aim to limit China's access to cutting-edge semiconductor technology critical for military and intelligence applications.

DeepSeek Accused of Circumventing Export Controls Using Shell Companies

Recent reports indicate that Chinese AI firm DeepSeek is allegedly employing shell companies in Southeast Asia to circumvent these U.S. restrictions.

A senior State Department official told Reuters that DeepSeek “willingly provided and will likely continue to provide support to China’s military and intelligence operations,” suggesting activities beyond open-source AI development.

Claims of DeepSeek Procuring Nvidia H100 GPUs Post-Ban

The official alleged DeepSeek accessed “large volumes” of Nvidia H100 GPUs despite the ban, possibly through intermediaries and remote data centers in Southeast Asia.

Reuters sources familiar with the issue confirmed DeepSeek’s possession of H100 chips acquired after the 2022 ban, although the quantity is reportedly much lower than the 50,000 units alleged by Scale AI CEO Alexandr Wang earlier this year.

Nvidia’s Response: DeepSeek Acquired Lawful H800 GPUs, Not H100

Nvidia has denied any wrongdoing, stating their investigation shows DeepSeek “used lawfully acquired H800 products, not H100”.

The H800 chip is a modified version of the H100 designed specifically for export to China, featuring reduced NVLink bandwidth and lacking FP64 capabilities to comply with U.S. export rules.

Broader Context: Chinese Efforts to Acquire Restricted AI Hardware

The allegations against DeepSeek highlight ongoing efforts by Chinese firms to acquire restricted AI hardware by unconventional means.

Other reports describe shipments of electronics disguised as live lobsters or concealed in suitcases sent to Southeast Asia, where rented servers help train AI models using U.S.-manufactured GPUs.

Malaysian authorities are currently investigating such cases.

PHOTO: UNSPLASH

This article was created with AI assistance.