DeepSeek Uses Restricted Nvidia Blackwell Chips to Train AI Models

Key Facts

1Chinese AI startup DeepSeek used Nvidia's most advanced Blackwell chips to train its latest AI model.

2Blackwell chips are subject to strict U.S. export controls intended to prevent them from reaching China.

3A Trump administration official stated this could represent a violation of U.S. export controls.

A senior Trump administration official revealed that Chinese AI startup DeepSeek utilized Nvidia's most advanced Blackwell chips to train its latest artificial intelligence model. These high-end chips are currently subject to stringent U.S. export controls designed to prevent advanced semiconductor technology from reaching Chinese firms. The official noted that this development could represent a significant violation of U.S. trade regulations, prompting concerns over enforcement gaps. The incident suggests the existence of a gray market or potential leaks within the global semiconductor supply chain that allow restricted hardware to bypass bans. Analysts expect this revelation to trigger a regulatory crackdown on Nvidia’s distribution channels and potentially lead to further sanctions on China's tech sector. Consequently, the news has weighed on semiconductor stocks as investors weigh the risks of increased geopolitical friction and tighter export oversight.