U.S. officials are investigating whether Chinese AI startup DeepSeek sourced advanced Nvidia (NASDAQ: NVDA) processors through Singapore distributors to bypass U.S. sanctions, Bloomberg reported. The probe centers on whether DeepSeek used restricted Nvidia technology to develop its AI model, R1.
DeepSeek’s R1 gained massive attention after outperforming rivals like ChatGPT despite using older hardware and a smaller budget. The chatbot quickly became the most downloaded free app on Apple’s App Store, raising concerns over its technological foundation.
The startup, backed by Chinese hedge fund High-Flyer, previously stated it operates 10,000 Nvidia A100 chips—compliant with U.S. export restrictions. However, Scale AI CEO Alexandr Wang recently claimed DeepSeek possesses 50,000 Nvidia H100 chips, the most advanced AI processors. No evidence has been provided to support this claim.
Meanwhile, Microsoft (NASDAQ: MSFT) is also investigating whether DeepSeek improperly accessed proprietary OpenAI data. The emergence of R1 has rattled the AI industry, sparking doubts about U.S. dominance in artificial intelligence.
DeepSeek’s rise sent shockwaves through the stock market, with Nvidia’s valuation plummeting nearly $600 billion as investors questioned AI infrastructure spending. The situation underscores growing concerns over China’s AI advancements and potential loopholes in U.S. export controls.


Trump DOJ Challenges Colorado’s Large-Capacity Magazine Ban in Second Amendment Lawsuit
Nvidia CEO Jensen Huang to Join Trump’s China Visit Amid AI Chip Tensions
Nintendo Shares Tumble as Weak Forecast and Rising Switch 2 Costs Worry Investors
Trump and IRS in Settlement Talks Over $10 Billion Tax Return Leak Lawsuit
Arteris Stock Surges After Strong Q1 Earnings Beat and Higher 2026 Outlook
Kuaishou Stock Jumps on Kling AI IPO Plans and $20 Billion Valuation
DOJ May Drop Gautam Adani Fraud Charges Amid $10 Billion U.S. Investment Plan
Argentina Court Upholds Cristina Kirchner Asset Seizure in Corruption Case
Applied Materials Forecasts Strong Q3 Revenue as AI Chip Demand Accelerates
SK Hynix Nears $1 Trillion Market Value Amid South Korea’s AI-Driven Stock Market Surge
Trump-Xi Summit Sparks Renewed Hope for Americans Detained in China
Samsung Shares Slide as Wage Talks Collapse, Raising Strike Fears
Taiwan Court Fines Tokyo Electron Unit $4.78M in Major TSMC Trade Secrets Case
US Trade Court Blocks Trump’s 10% Global Tariffs
U.S. Army Soldier Charged in $400K Insider Betting Scheme on Maduro Capture
Ibiden Stock Surges as AI Chip Demand Boosts Profit Outlook
US-China Trade Talks Sideline Chip Export Controls as Nvidia China Sales Draw Attention 



