Thursday, July 17, 2025

US Launches Probe into DeepSeek’s Use of Restricted AI Chips

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The battle for AI dominance just heated up. The United States Commerce Department has initiated an investigation into whether China’s DeepSeek illegally accessed restricted American AI chips, sparking a wave of controversy and concern over the future of AI technology.

DeepSeek, which has captured global attention with its new AI assistant, surged to the top of Apple’s App Store last week, triggering fears about China’s growing presence in AI. This led to a massive sell-off in US tech stocks, wiping out nearly $1 trillion in market value.

The investigation centers on the smuggling of Nvidia’s advanced AI chips, which were meant to be off-limits to China. DeepSeek, however, maintains it legally purchased Nvidia’s H800 chips in 2023, while rumors swirl about potentially smuggled components from various countries. The investigation continues to unfold, keeping the AI industry on edge.

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