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US lawmakers urge Trump to push for new curbs on NVIDIA's AI chips after DeepSeek fiasco

FP Staff January 31, 2025, 15:34:40 IST

DeepSeek’s latest AI model potentially benefiting from NVIDIA’s H20 chips, which are designed to comply with current US export rules unless lawmakers are now urging the Trump administration to revisit these controls

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As the US government considers new export restrictions on NVIDIA’s chips, the case of DeepSeek is likely to intensify the debate over China’s role in the AI race. Image Credit: Reuters, Reuters
As the US government considers new export restrictions on NVIDIA’s chips, the case of DeepSeek is likely to intensify the debate over China’s role in the AI race. Image Credit: Reuters, Reuters

Two US lawmakers are urging President Donald Trump’s administration to consider imposing new export restrictions on NVIDIA’s artificial intelligence (AI) chips, alleging that the Chinese AI company DeepSeek has exploited these chips in its AI models. Republican Representative John Moolenaar and Democrat Representative Raja Krishnamoorthi, who lead the House Select Committee on China, have called for this action as part of a broader review of the US export control system.

In a letter addressed to National Security Advisor Michael Waltz, the lawmakers requested that the Commerce and State Departments scrutinise the potential national security risks of allowing the export of NVIDIA’s H20 chips and similar AI technology. These chips are currently outside the scope of US export restrictions, but the lawmakers argue that their use by DeepSeek could have serious implications for national security.

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DeepSeek’s AI model and growing concerns

The controversy surrounding DeepSeek’s use of NVIDIA chips comes after the Chinese startup unveiled a new AI model, which has garnered attention for its efficiency and low cost. DeepSeek’s AI assistant, released recently, allegedly uses far less data than existing models, possibly signalling a breakthrough in reducing the costs associated with AI development. The success of this AI tool has raised concerns in Washington about China’s rapid advancement in AI technology, with fears that it could be used for cyberattacks or even bioweapons development.

This growing concern over China’s AI capabilities has prompted former President Joe Biden to introduce measures to restrict China’s access to advanced AI chips and the tools used to produce them. However, with DeepSeek’s latest AI model potentially benefiting from NVIDIA’s H20 chips, which are designed to comply with current US export rules, lawmakers are now urging the Trump administration to revisit these controls.

NVIDIA’s position and industry response

NVIDIA has responded to the calls for tighter restrictions by reiterating that its products comply with all US government regulations. The company has expressed its willingness to cooperate with the administration’s approach to regulating AI technology, but it has not specifically addressed the claims regarding DeepSeek’s use of its chips. NVIDIA’s statement reflects its commitment to adhering to the government’s export control policies while also navigating the complex landscape of international AI development.

As the US government considers new export restrictions on NVIDIA’s chips, the case of DeepSeek is likely to intensify the debate over China’s role in the AI race. The Trump administration is reportedly weighing these new measures as part of a broader push to tighten controls on AI-related technologies and curb China’s access to the tools that could bolster its technological and military power.

The outcome of this review could have significant consequences for NVIDIA, as well as for the broader global semiconductor industry. As the US continues to grapple with China’s technological advancements, the pressure on companies like NVIDIA to comply with export regulations is only expected to increase. The outcome of this investigation and the potential new curbs on NVIDIA’s chips could reshape the future of AI technology and its global distribution.

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