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The US Home of Representatives China committee has requested Nvidia to elucidate whether or not and the way Chinese language firm DeepSeek obtained export-controlled chips to energy its synthetic intelligence app, which lawmakers say poses a nationwide safety menace.
John Moolenaar, the Republican chair of the panel, and his Democratic counterpart Raja Krishnamoorthi on Wednesday wrote to Nvidia to acquire details about their gross sales to China and south-east Asia.
The letter got here after the panel launched a report that mentioned DeepSeek, which educated its mannequin on Nvidia chips, posed a “profound menace” to US nationwide safety.
Moolenaar mentioned DeepSeek was a “weapon within the Chinese language Communist social gathering’s arsenal, designed to spy on People, steal our expertise, and subvert US legislation”.
The US has lately launched sweeping export controls designed to make it tougher for Chinese language teams to acquire superior American expertise that might assist its army.
Scrutiny from the committee will increase stress on Nvidia over whether or not its refined chips are being covertly bought to China, which the corporate has lengthy mentioned it really works to keep away from.
Moolenaar claimed that DeepSeek “exploited US AI fashions and reportedly used superior Nvidia chips that ought to by no means have ended up in Chinese language Communist social gathering fingers . . . That’s why we’re sending a letter to Nvidia to demand solutions”.
Nvidia on Wednesday pushed again strongly towards any suggestion it is likely to be answerable for export-controlled chips falling into the unsuitable fingers, saying it adopted the federal government’s instructions on the place it could or can’t promote chips “to the letter”.
“The expertise trade helps America when it exports to well-known firms worldwide. If the federal government felt in any other case, it might instruct us,” Nvidia added.
The report got here a day after it emerged that the US had imposed export controls on Nvidia promoting H20 chips to China, blindsiding the corporate, which had anticipated reduction from the restrictions. In a regulatory submitting, it mentioned the controls would decrease its earnings by $5.5bn within the quarter to April 27.
Nvidia depends on a posh community of provide chain companions comparable to Dell and Supermicro, which package deal its chips into servers and promote on to prospects.
It addressed recommendations within the congressional report that prospects in China could also be accessing its export-controlled chips by way of subsidiaries in Singapore, which accounted for 18 per cent of its 2025 fiscal 12 months income, or $23.7bn.
Nvidia mentioned the income it reviews from Singapore was primarily based on billing addresses, that means it usually included subsidiaries of US firms. “The related merchandise are shipped to different areas, together with america and Taiwan, to not China,” it mentioned.
The China committee’s report mentioned DeepSeek transmitted information utilizing infrastructure that was related to China Cell, a significant Chinese language telecoms supplier that the Pentagon has designated as having connections to the nation’s army.
It added that DeepSeek additionally built-in monitoring instruments from massive Chinese language tech teams, together with ByteDance, the proprietor of TikTok, along with Baidu, a Chinese language web search engine, and Tencent.
“This entangles DeepSeek’s information harvesting structure with [People’s Republic of China] firms identified for his or her roles in surveillance and CCP management, heightening the chance that overseas adversary entities might acquire entry to People’ non-public info,” the report mentioned.
The Chinese language embassy in Washington didn’t reply to a request for remark. DeepSeek couldn’t instantly be reached for remark.
DeepSeek sparked a tech market rout earlier this 12 months when it introduced breakthroughs that appeared to shift the steadiness of energy in an AI arms race between Washington and Beijing.
In January Nvidia had about $600bn wiped off its market valuation as traders reacted to reviews that DeepSeek had educated fashions that have been aggressive with the newest choices from teams comparable to OpenAI at a fraction of the fee and utilizing far much less computing energy.
DeepSeek mentioned it educated its “R1” mannequin utilizing clusters of Nvidia’s H800 chips, that are much less highly effective variations of its H100 chip. The H800 was particularly designed for the Chinese language market to adjust to US export controls and was later blocked by the Biden administration in 2023.
