The Trump administration is reportedly planning to restrict the Chinese AI company DeepSeek’s access to American technology and consumers.
According to The New York Times, these measures escalate the US-China tech rivalry and focus on DeepSeek’s rapid rise in the AI sector.
The proposed measures include banning U.S. sales of Nvidia’s advanced AI chips to DeepSeek and restricting American access to DeepSeek’s AI services.
On April 15, 2025, the White House tightened regulations limiting Nvidia’s AI chip exports to China. US officials are worried that DeepSeek’s cost-effective AI models, such as DeepSeek-V3, which launched for $6 million in January 2025, could disrupt global markets.
Allegations Against DeepSeek
OpenAI alleges DeepSeek violated its terms by distilling its models, suggesting unlawful use of American IP.
A US congressional report claims DeepSeek shares American user data with the Chinese Communist Party (CCP) and manipulates content to align with CCP narratives.
The report estimates DeepSeek acquired 60,000 Nvidia chips, including 20,000 under US export controls, possibly through unauthorised means. Singaporean authorities recently arrested three individuals for illegally exporting Nvidia chips, allegedly for DeepSeek.
Read: Trump Eyes Ban on Chinese AI Chatbot DeepSeek Over Security Risks
Nvidia asserts compliance with US regulations, stating it ships products per legal guidelines. However, the US Select Committee on the Chinese Communist Party demands more transparency about Nvidia’s Asian sales, citing concerns over export control enforcement.
Data regulators in Italy, France, South Korea, and Ireland are investigating DeepSeek’s compliance with privacy laws, focusing on its data storage practices in China. These probes highlight global concerns about DeepSeek’s operations and user data security.
DeepSeek’s low-cost, open-source AI models challenge US tech dominance, raising national security and economic concerns. The proposed restrictions reflect Washington’s efforts to maintain its AI lead amid a complex global supply chain. DeepSeek has not publicly responded to the allegations, leaving its practices under intense scrutiny.
