The United States is currently looking into whether DeepSeek managed to acquire NVIDIA’s advanced AI chips through intermediaries in Asia, potentially exploiting trade loopholes.
In light of DeepSeek’s recent advancements, the US is stepping up its efforts to tighten export regulations, possibly focusing on investigating trade loopholes. Despite several rounds of stringent export controls, it seems that countries like China still have access to NVIDIA’s top-tier AI chips, such as the H100s. According to a Bloomberg report, US authorities are examining whether these chips reached Chinese companies via countries like Singapore. Should they find any loopholes, the repercussions could be significant.
Why zero in on Singapore? According to data shared by @KobeissiLetter, NVIDIA’s sales to Singapore reportedly skyrocketed by 740% since DeepSeek was established. Singapore, not being at the forefront of the AI race, adds weight to suspicions of a potential loophole. Intriguingly, NVIDIA has acknowledged that the location from where they invoice doesn’t necessarily match the actual end-user location, hinting at possible workarounds to skirt US restrictions.
To shed more light on the situation, DeepSeek is reportedly in possession of over 10,000 of NVIDIA’s “China-specific” H800 AI GPUs as well as 10,000 of the more advanced H100 AI chips, leading to speculation that China isn’t lacking in top-notch AI GPUs. It’s clear that with these developments, the current US strategies might not be as effective as intended.
In addition to Singapore, other nations such as the Philippines are rumored to be involved in supplying chips to China, adding to the complexity of the situation. As the US gears up for a formal investigation, NVIDIA’s 20% AI revenue hangs in the balance. If these loopholes are closed, it could have profound implications not just for NVIDIA but for the AI marketplace at large.
