Nvidia Denies Claims of Chip Smuggling by Chinese AI Startup

Nvidia has denied allegations that the Chinese AI startup DeepSeek is using smuggled Blackwell GPUs, which are restricted for export to China under U.S. trade regulations. A report from The Information claimed DeepSeek had acquired these advanced chips to train its AI model, raising concerns about potential circumvention of U.S. tech restrictions.

An Nvidia spokesperson stated, 'We haven't seen any substantiation or received tips of phantom data centers constructed to deceive us,' indicating that while they investigate, they have no evidence supporting the smuggling claims.

The U.S. has imposed a ban on Nvidia's Blackwell chips to maintain its lead in the AI race, making their role in this situation politically sensitive. The controversy comes as DeepSeek's recent developments have significantly impacted the global tech market, contributing to a sell-off that erased billions from U.S. stock prices.

Despite the restrictions, the venture capital landscape in China remains optimistic, with industry experts noting that the emergence of startups like DeepSeek could bolster China's AI sector's confidence in overcoming such constraints.