Recent reports allege that Chinese AI startup DeepSeek is developing its next advanced AI model using Nvidia’s Blackwell chips, which are banned from export to China under U.S. export control rules. According to a report in The Information, DeepSeek obtained thousands of these prohibited GPUs through a complex smuggling scheme — routing them first to countries where the chips are legally sold and then importing the hardware components into China piece by piece to evade restrictions. These Blackwell GPUs are among Nvidia’s most powerful AI processors, and access to them would materially boost DeepSeek’s training capabilities for a large language model.
Supporters of the allegation say the chips were installed in data centers allowed to receive them, then harvested and shipped covertly into China before being reassembled — a tactic that could enable DeepSeek to train its model with hardware that should be off limits under current U.S. policy
Nvidia Rejects the Allegations
Despite these claims, Nvidia has denied that DeepSeek is using its banned Blackwell AI chips. Company spokespeople have said there is no verified evidence that DeepSeek has deployed any Blackwell GPUs in China and dismiss the smuggling narrative as unsubstantiated. Nvidia stated it investigates any credible leads related to export control violations but has not confirmed such activities in this case.
The company emphasized that enforcement of export regulations is vital and that it continues to develop technologies intended to help monitor and prevent smuggling of its hardware — including new location verification software being tested for AI chips.
Context: Export Controls and AI Chip Access
- Blackwell chips are advanced Nvidia GPUs restricted from sale or export to China and some other locations under current U.S. technology export policies.
- U.S. authorities have taken legal action in recent months against individuals and networks accused of attempting to smuggle high-end AI chips into restricted regions, heightening scrutiny around illegal chip flows.
- Earlier investigations indicated that DeepSeek may have accessed certain Nvidia chips that were lawfully shipped before export bans or through intermediaries, but evidence around Blackwell use was unclear before these recent media reports.
What This Means for the AI Race
If true, the use of smuggled high-end GPUs like Blackwell could give a startup like DeepSeek an edge in training very large and capable AI models — potentially narrowing the technology gap with major global AI labs. However, firm confirmation is lacking, and Nvidia’s official denial highlights how sensitive such allegations are amid ongoing U.S.–China tensions over AI technology and export controls. The Times of India
Authorities and industry watchers will likely continue to monitor hardware flows and enforcement of export restrictions as part of broader efforts to protect advanced AI capabilities and maintain compliance with international trade laws.
