A senior U.S. official revealed to Reuters Chinese artificial intelligence start-up DeepSeek trained its upcoming AI model using Nvidia’s most advanced Blackwell chips, a move that could breach U.S. export restrictions.
The official said Washington believes the chips are installed at DeepSeek’s data centre in Inner Mongolia and that the company may attempt to remove technical markers revealing the use of American hardware. The source did not disclose how the information was obtained or how DeepSeek acquired the chips, but stressed that U.S. policy prohibits shipping Blackwell processors to China.
China’s embassy in Washington criticised what it described as the politicisation of trade and technology and opposed the broad use of export controls under the banner of national security.
Divisions in Washington
Confirmation that DeepSeek obtained the chips could deepen debate in Washington over how far to restrict China’s access to cutting-edge AI semiconductors. Some officials, including White House AI adviser David Sacks and Nvidia chief executive Jensen Huang, argue that allowing limited exports could discourage Chinese firms such as Huawei from accelerating domestic alternatives.
Others warn that advanced chips could be redirected to military use, strengthening China’s strategic capabilities. Chris McGuire, a former U.S. National Security Council official, said the development underscored the risks of exporting AI technology to China.
Current U.S. rules bar Blackwell exports to China. Although President Donald Trump previously signalled openness to selling a modified version of the chip, he later reversed course, saying the most advanced processors should remain in the United States.
Broader AI Competition
DeepSeek, based in Hangzhou, drew global attention last year after unveiling AI models that rivalled leading U.S. systems. According to the U.S. official, its latest model may also have relied on a technique known as distillation, using outputs from established American AI systems to improve performance.
The disclosure adds to tensions over the global AI race, as Washington seeks to curb China’s technological rise while balancing commercial interests and national security concerns.
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