Nvidia has strongly countered a report claiming that Chinese AI startup DeepSeek, which made waves earlier this year by disrupting US markets, is covertly using its restricted Blackwell AI chips. A recent report by The Information alleged that DeepSeek had smuggled Blackwell GPUs to power its upcoming AI model.
These processors are some of Nvidia's most sophisticated and have been designated for export to China under U.S. trade limitations intended to preserve America's advantage in the artificial intelligence competition. Nonetheless, the leading chipset company has refuted these assertions. The United States has prohibited the export of Nvidia's Blackwell chips, regarded as the company's most sophisticated products, to China as part of its plan to stay ahead in the global AI competition.Market impact of DeepSeek.
DeepSeek’s R1 Model Sparks Global Concerns Over China’s AI Advancements
In January 2025, DeepSeek made a striking entry into the global tech scene with the launch of its R1 AI model. Built at a fraction of the cost of its U.S. counterparts, the R1 model raised alarms about China’s rapidly advancing capabilities in artificial intelligence. The release contributed to a market sell-off that wiped billions from U.S. stock values. By August, DeepSeek hinted at China's plans to develop "next-generation" chips for AI applications, further fueling concerns about how the country might bypass U.S. export restrictions.
Nvidia’s Chips in the AI Race
Nvidia’s Blackwell chips have become central to the AI boom, powering everything from large language models to cutting-edge data centers. As demand for advanced AI technologies surges, Nvidia's relationship with China has turned into a contentious issue in U.S. political circles, with trade restrictions placing the company at the heart of the debate.
Nvidia’s H200 Chips: Navigating the Political Crossfire
Earlier this week, former President Donald Trump announced that Nvidia would be allowed to ship its H200 chips to “approved customers” in China and other countries, provided that 25% of the sales go to the U.S. government. The decision has sparked criticism from some lawmakers, highlighting the ongoing tension between commercial interests and national security concerns. Trump emphasized that this deal, aimed at benefiting U.S. workers and taxpayers, would allow Nvidia to continue supporting China’s growing tech sector while protecting U.S. interests.