Nvidia denies report claiming China’s DeepSeek is using banned AI chips

Nvidia

Nvidia has responded to a report that raised questions about whether Chinese AI startup DeepSeek may be using Nvidia chips that are banned from being exported to China. The company has denied the claim, saying there is no evidence to support it and that it follows US export rules.

The issue started after a report suggested that DeepSeek may have trained its AI models using Nvidia’s latest Blackwell chips. These are high-end processors that cannot legally be shipped to China under current US trade restrictions. The report hinted that the chips may have been obtained through unofficial channels.

DeepSeek drew global attention earlier this year after launching an AI model that surprised many in the tech industry. The model appeared to deliver strong performance while being built at a much lower cost than similar AI systems developed in the US. Around the same time, US tech stocks fell sharply, with Nvidia’s share price also taking a hit as investors worried about rising competition from China.

Nvidia has rejected the report’s claims, calling them unproven. The company said it closely tracks its supply chain and has not found any signs that DeepSeek is using restricted Blackwell chips. Nvidia added that it looks into all such claims but has not seen anything that shows export rules were violated.

The situation has once again brought attention to US restrictions on advanced chip exports to China. These rules are meant to limit access to powerful computing hardware that can be used for advanced AI work. Nvidia, which supplies many of the world’s AI chips, has been adjusting its product offerings and sales to stay within these regulations.

Some industry observers have pointed out that strong AI models can still be built without the most advanced chips. Companies can sometimes get good results by using older hardware more efficiently or by improving how their software is trained. That means DeepSeek’s progress may not automatically point to the use of banned hardware.

For now, there has been no official finding that any rules were broken. Nvidia’s position remains unchanged: it says the claims are speculative and that it is operating within the law.

The episode shows how closely AI development, global competition, and trade restrictions are now linked. Even unconfirmed reports can move markets and raise questions about how technology is being built and shared across borders.