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.


Netanyahu Requests Presidential Pardon Amid Ongoing Corruption Trial
Australia Moves Forward With Teen Social Media Ban as Platforms Begin Lockouts
Hikvision Challenges FCC Rule Tightening Restrictions on Chinese Telecom Equipment
Bolsonaro Blames Medication Mix-Up for Ankle Monitor Tampering as Detention Continues
UPS MD-11 Crash Prompts Families to Prepare Wrongful Death Lawsuit
Apple Appoints Amar Subramanya as New Vice President of AI Amid Push to Accelerate Innovation
Microchip Technology Boosts Q3 Outlook on Strong Bookings Momentum
UN General Assembly Demands Russia Return Ukrainian Children Amid Ongoing Conflict
Quantum Systems Projects Revenue Surge as It Eyes IPO or Private Sale
Apple Alerts EU Regulators That Apple Ads and Maps Meet DMA Gatekeeper Thresholds
Amazon and Google Launch New Multicloud Networking Service to Boost High-Speed Cloud Connectivity
AI-Guided Drones Transform Ukraine’s Battlefield Strategy
OpenAI Moves to Acquire Neptune as It Expands AI Training Capabilities
CFPB Reaches $1.75 Million Settlement with MoneyLion Over Military Loan Overcharges
Appeals Court Blocks Expansion of Fast-Track Deportations in the U.S.
Bristol Myers Faces $6.7 Billion Lawsuit After Judge Allows Key Shareholder Claims to Proceed
Banks Consider $38 Billion Funding Boost for Oracle, Vantage, and OpenAI Expansion 



