US Investigates If DeepSeek Got Nvidia Chips From Firms in Singapore, Report Says

U.S. officials are investigating whether Chinese artificial intelligence startup DeepSeek skirted American export restrictions on advanced chip sales and bought advanced Nvidia (NVDA) semiconductors through third parties in Singapore, Bloomberg reported Thursday, citing people familiar with the matter.

DeepSeek’s success has come despite U.S. export controls on cutting-edge chips to China.

Investopedia has not independently confirmed the investigation. The FBI was not immediately available for comment Friday morning. DeepSeek didn’t immediately reply to an email seeking comment.

DeepSeek rattled markets earlier this week following its release of a super-efficient R1 model at a fraction of the cost of AI models of U.S. rivals like OpenAI’s ChatGPT. OpenAI said Wednesday that it is probing whether DeepSeek improperly used its data to launch R1. 

Nvidia Insists Customers Comply With Laws

Nvidia said it makes sure its customers adhere to regulations.

“Many of our customers have business entities in Singapore and use those entities for products destined for the U.S. and the west,” a Nvidia spokesperson said in a statement to Investopedia. “We insist that our partners comply with all applicable laws, and if we receive any information to the contrary, act accordingly.”

The company also said its revenue “associated with Singapore does not indicate diversion to China.”

“Our public filings report 'bill to' not 'ship to' locations of our customers,” the spokesperson said.