US Alleges Chinese AI Firm DeepSeek Supports Military and Dodges Export Controls Using Shell Companies
The United States government has accused Chinese AI firm DeepSeek of aiding China’s military and intelligence sectors. A senior U.S. State Department official told Reuters that DeepSeek has shared user data with Beijing’s surveillance system and is likely to continue supporting the military through its advanced AI models. These claims come as tensions between the U.S. and China escalate over technology access and national security concerns.
DeepSeek, which made headlines in January for claiming its AI models rival OpenAI and Meta’s top systems at a fraction of the cost, allegedly uses Southeast Asian shell companies to bypass U.S. export restrictions. These tactics reportedly helped the company access powerful U.S.-made AI chips, such as Nvidia’s H100s, which have been restricted from shipment to China since 2022.
The U.S. official also revealed that DeepSeek appears in over 150 procurement records linked to the Chinese military and has provided services to People’s Liberation Army research institutions. Additionally, the firm has reportedly transmitted American users’ data through backend systems connected to state-owned China Mobile, raising major privacy concerns for its global user base.
While Nvidia stated it no longer sells restricted chips in China, sources claim DeepSeek has still managed to acquire some of these chips through loopholes and third-party data centers, particularly in Southeast Asia. Singaporean authorities recently charged individuals connected to the suspected illegal shipment of Nvidia chips to DeepSeek, further supporting these allegations.
Despite the accusations, DeepSeek has not been added to the U.S. trade blacklist, and there are no official sanctions against the company as of now. The Chinese government has not responded to the claims, and Nvidia has denied knowingly supporting any restricted activities. The incident underscores growing concerns in Washington over how Chinese AI firms might be covertly accessing restricted U.S. technologies to bolster their military capabilities.
Source: Reuters