Singapore pledges to assist US probe into Nvidia chip sales to China’s DeepSeek

Singapore has promised to work closely with US authorities to probe allegations over how Chinese AI firm, DeepSeek obtained Nvidia chips through proxies. 

The Singapore Ministry of Trade and Industry issued a statement which read in part:

Questions have arisen over whether DeepSeek gained access to Nvidia chips that were subject to US export controls through intermediaries in Singapore.

~ Singapore Ministry of Trade and Industry

However, Nvidia has clarified there is no reason to suspect DeepSeek for getting any export-controlled products from Singapore.

As a major international business hub, Singapore attracts companies from around the world, including the US and Europe. Nvidia stated that most established businesses use their entities in Singapore to buy chips for products sent to the US and other Western countries.

Donald Trump met Nvidia CEO over DeepSeek release

While the release of DeepSeek was received with jubilation in most countries, it was different in the US. The product launch raised a lot of suspicion in the North American country, and it is keen to establish why and how DeepSeek costs only a fraction of Ai products created in the US.

President Trump met with Jensen Huang, the Chief Executive Officer of Nvidia, at the White House on Friday after a turbulent week for the AI chip maker following the release of DeepSeek. The DeepSeek release raised questions over Nvidia’s valuations and whether Beijing has closed the gap with the US in AI tech.

Nvidia released a press statement on DeepSeek, stating that it believes the Chinese firm didn’t break US restrictions.

DeepSeek has not fully identified which AI semiconductors it used to develop its models. Yet, its researchers indicated that the V3 model launched last month was trained on 2,048 of Nvidia’s H800 chips. 

Nvidia developed the H800 model to target the Chinese market after the former administration denied the country access to more powerful versions.

The urgency of the investigation is underscored by the findings of NewsGuard, which evaluated DeepSeek’s AI chatbot performance. Notably, the audit revealed only 17% accuracy when delivering news and information—an alarming statistic, especially when compared to its Western rivals, which boasted higher accuracy and reliability rates. 

The audit reported DeepSeek’s chatbot repeated false claims approximately 30% of the time and provided vague responses 53% of the time, leading to a dire 83% failure rate.

Restrictions on AI chip exports receive more support

Several lawmakers have continued to support restrictions on AI chips for exports. The proponents argue that the restrictions help review American export controls to align them with the international tech market dynamics. However, America’s greatest fear is losing its competitive edge to rapidly advancing Chinese AI capabilities.

Taiwan‘s Ministry of Digital Affairs is also concerned by China’s AI growth. Citing national security concerns, the ministry has banned the use of DeepSeek products within public offices and key infrastructure facilities. The ministry’s statement was clear: DeepSeek is a Chinese product whose operations raise significant data security concerns.

Perhaps the most fascinating aspect is that DeepSeek developed its AI model using technologies for developing chips, which the United States has imposed restrictions on and hence, should have been inaccessible.

The USA’s decision to investigate DeepSeek concerns national security agencies and shows the increasing pressure on the US to review its policy to preserve its technological leadership.

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