US Accuses AI Firm DeepSeek of Supporting China’s Military and Evading Export Controls

The US government has accused Chinese AI startup DeepSeek of aiding China’s military and intelligence operations while circumventing export restrictions on advanced semiconductor technology.

According to a senior US State Department official speaking to Reuters, DeepSeek has actively supported China’s military and shared user data with Beijing’s surveillance agencies, raising serious privacy concerns given the firm’s tens of millions of daily users globally. DeepSeek reportedly used shell companies in Southeast Asia to acquire Nvidia’s high-end H100 chips, which are restricted under US export controls due to concerns about China’s military advancements.

DeepSeek, based in Hangzhou, stunned the tech world earlier this year by claiming its AI reasoning models rival leading US models at a fraction of the cost. However, US officials express skepticism about these claims, suspecting the company’s rapid growth heavily relies on US technology.

The firm is referenced over 150 times in procurement records linked to China’s People’s Liberation Army and related defense entities. While DeepSeek has not responded to these allegations, US investigators continue probing its ties and technology acquisition methods.

Nvidia, the chip manufacturer, confirmed it no longer sells data center chips in China due to export restrictions but did not confirm any direct involvement with DeepSeek. Singaporean authorities recently charged individuals in connection with the illicit transfer of Nvidia chips to the startup.

While DeepSeek has not been officially blacklisted by the US government, ongoing investigations reflect escalating tensions amid the broader US-China tech rivalry. Malaysia is also probing whether Chinese firms within its borders are using restricted Nvidia chips for AI training.

China’s foreign and commerce ministries have yet to comment on the allegations.