ISLAMABAD: The Trump administration is reportedly considering penalties against Chinese AI start-up DeepSeek, which could block its access to U.S. technology and potentially restrict American users from accessing its services, The New York Times reported on Wednesday.
DeepSeek’s recent launch of a low-cost AI model has disrupted the global AI landscape, prompting growing concerns in Washington over China’s advancements in artificial intelligence. The U.S. government has since intensified efforts to curb the company’s growth and its ties to American chipmaker Nvidia.
Nvidia has been central to U.S. export controls, with officials seeking to prevent the sale of high-performance AI chips to China as part of a broader strategy to maintain a technological edge. Earlier this week, the administration moved to restrict the export of Nvidia’s H20 AI chip to China—a decision expected to cost the company an estimated $5.5 billion, according to a statement issued on Tuesday.
In a related development, the U.S. House Select Committee on China confirmed that it has sent a formal inquiry to Nvidia, seeking clarity on how its chips may have been used to power DeepSeek’s models despite ongoing export restrictions.
The U.S. has maintained a ban on the export of Nvidia’s most advanced chips to China since 2022, citing national security concerns and the risk that such technologies could enhance China’s military capabilities.
The latest measures represent Washington’s ongoing efforts to limit Beijing’s access to cutting-edge semiconductors amid rising tensions over technological dominance.
