US Congress investigates NVIDIA for allegedly providing AI chips to China's DeepSeek

The U.S. House of Representatives Special Committee on China has opened an investigation into Nvidia for allegedly knowingly leaking critical chips and technologies for AI development to DeepSeek, violating regulations restricting the export of AI-related products, multiple media outlets reported.

US Officials Target Nvidia and DeepSeek Amid Fears of China's AI Progress - The New York Times
https://www.nytimes.com/2025/04/16/technology/nvidia-deepseek-china-ai-trump.html

US House panel probes whether DeepSeek used restricted Nvidia chips
https://www.ft.com/content/04512d41-70a7-4b53-8b50-0c9d28c7b80e

Nvidia follows export laws 'to the letter' after China chip sales end
https://www.cnbc.com/2025/04/16/nvidia-follows-export-laws-to-the-letter-after-china-chip-sales-end.html

The performance of the inference model ' DeepSeek-R1 ' released by Chinese AI company DeepSeek in January 2025 shook America's AI dominance, causing NVIDIA'sstock price to plummet . On the other hand, NVIDIA has a close relationship with Chinese AI companies, as demand for its China-only AI chip ' H20 ' has skyrocketed after the company advertised that 'NVIDIA chips were used in the development of DeepSeek-R1.'

It has also been pointed out that the development of DeepSeek's AI may have involved the use of high-performance AI chips subject to export controls, and the US government began an investigation into this issue in February 2025. A smuggler suspect was arrested in March.

NVIDIA chip smuggling suspect arrested in Singapore - GIGAZINE

The U.S. Congress is also growing concerned about NVIDIA's ties with Chinese companies. On April 16, 2025, the House of Representatives China Select Committee, which works to address national security threats from China, opened an investigation into NVIDIA's semiconductor sales to Asia.

The investigation is aimed at examining whether NVIDIA provided DeepSeek with technology critical to its AI development, thereby violating export control regulations. This is the first time that a congressional investigation has been conducted into NVIDIA's business.

Although it has not been reported which specific regulations NVIDIA violated, the former Biden administration introduced new rules to strengthen export controls on semiconductors for AI just before taking office in January 2025. There was opposition to these rules from the semiconductor industry, including NVIDIA.

Biden administration announces new rules for AI chip exports, NVIDIA and others protest, saying it will 'reduce American competitiveness' - GIGAZINE

On April 16, 2025, John Moolenaar, chairman of the China Special Committee, and Raja Krishnamurthy, chief committee member, released a report stating that 'DeepSeek secretly sent American user data to the Chinese Communist Party, manipulated the information to fit the Chinese Communist Party's propaganda, and trained American AI models using illegally obtained data.' In response to this report , the committee sent a letter to NVIDIA questioning its sales of semiconductors in China and Southeast Asia.

'DeepSeek has reportedly misused American AI models and used advanced NVIDIA chips that should never have fallen into the hands of the Chinese Communist Party. That's why we've written to NVIDIA asking for answers,' Moolenaar said.

In a statement following the launch of the investigation, Nvidia denied that its high-performance AI chips had been sent to China, saying, 'The US government tells companies what they can sell and where they can sell, and we strictly adhere to those instructions.'

Meanwhile, the Chinese Embassy in Washington DC and DeepSeek did not respond to media inquiries.

It has been reported that NVIDIA CEO Jensen Huang visited China on April 17, 2025 and met with Chinese client companies, including DeepSeek, and government officials regarding the Trump administration's semiconductor export restrictions.

NVIDIA CEO Jensen Huang visits China to meet with Chinese clients and government officials, including DeepSeek, about President Trump's new semiconductor export restrictions, seeking new chips for China - GIGAZINE