Well, the US export controls haven't put a big dent in DeepSeek's AI ambitions, as the Chinese firm is said to have access to a large arsenal of NVIDIA's high-end chips.
DeepSeek is Reportedly Aiding China's Military Operations By Accessing NVIDIA's High-End Chips Remotely
China's DeepSeek is said to be the largest AI firm in the nation, similar to what OpenAI is doing in the US. DeepSeek made headlines with the release of its R1 model, which was said to employ far less computational power than what Big Tech currently utilizes, and this led them to see market attention to unexpected levels. Now, according to a report by Reuters, it is claimed that DeepSeek is now working with the Chinese military in intelligence operations, and is providing information it receives from the millions of users abroad, including data from firms like Amazon, Google, and Microsoft, which offer DeepSeek's LLMs to customers.
The report, citing a senior official in the US administration, claims that DeepSeek is transmitting American data to Chinese entities through "backend infrastructure", and the Chinese AI firm is also mentioned more than 150 times in procurement records for the military, showing that the company has deep-rooted connections with state-run organizations. The US is yet to implement a restriction on the usage of China's DeepSeek in the nation, but given the firm's involvement in China's military, the Trump administration might have a solid reason for a potential ban, but this isn't certain for now.
Not just links with the military, but DeepSeek is said to be in blatant violation of US export controls, since the firm reportedly has "shell companies" in Southeast Asia, where it is accessing data centers to use NVIDIA's high-end AI chips remotely. DeepSeek is also said to have used NVIDIA's high-end H100 AI chips to aid in military operations with China, showing that despite US export controls, Chinese organizations have found solid workarounds to fulfill their AI ambitions. Considering the past track record, DeepSeek is likely to source high-end AI chips from Malaysia or Singapore, since these states are known for providing China with AI computing.
DeepSeek's AI efforts in China are now pushing for state-level influence, and with that, it would be interesting to see whether the Trump administration will take any action on the organization since, ultimately, it will evolve into a matter of national security.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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