WASHINGTON: The Trump administration is considering implementing penalties that would prevent China’s DeepSeek from acquiring American technology. They are also discussing the possibility of restricting access for U.S. citizens to the startup’s services, according to a report from The New York Times on Wednesday.
The introduction of China’s affordable AI model, DeepSeek, has stirred unease within the AI industry. In response, the U.S. government has begun taking measures to limit the influence of the Chinese startup, particularly concerning its partnership with chip manufacturer Nvidia.
Nvidia’s AI chips have been a significant target of U.S. export restrictions, aimed at preventing the sale of advanced technology to China to sustain the U.S.’s competitive edge in AI.
This week, the Trump administration took steps to restrict Nvidia’s AI chip sales to China.
The U.S. House Select Committee on China indicated in a report that it has formally requested Nvidia provide information regarding its sales in China and Southeast Asia, investigating how its chips might support DeepSeek’s AI models despite existing U.S. export limitations.
Nvidia has alerted investors that it could face a substantial loss of $5.5 billion following Washington’s decision to restrict exports of its H20 AI chip to China. This latest move is part of Trump’s ongoing strategy to curb China’s access to advanced semiconductor technology.
Since 2022, the U.S. has prohibited the export of Nvidia’s most sophisticated chips to China, fearing that these advanced technologies could enhance China’s military capabilities.
Neither DeepSeek, the White House, nor the Commerce Department immediately responded to requests for comments from Reuters.
