US accuses Chinese AI startup DeepSeek of aiding Chinese military, violating export controls

From Nasdaq: 2025-06-23 15:35:00

DeepSeek, a Chinese AI startup, is accused by a senior U.S. official of supporting China’s military and intelligence operations and bypassing export controls on advanced semiconductors. Allegations include routing chip purchases through Southeast Asian shell companies to obtain Nvidia H100 processors barred from China.

The startup reportedly shared user data with Beijing’s surveillance apparatus, leveraging infrastructure tied to China Mobile. Despite U.S. export restrictions, DeepSeek holds “large volumes” of U.S. AI chips and offers services on major cloud platforms like Amazon, Microsoft, and Google.

DeepSeek is accused of aiding PLA research and intelligence efforts, evading U.S. chip export controls, and having services accessible through cloud offerings of Amazon, Microsoft, and Google. User data is allegedly funneled to Chinese government surveillance, with access to high-end Nvidia H100 GPUs despite U.S. sanctions.

Looking ahead, the U.S. may impose sanctions on DeepSeek, cloud providers could face compliance scrutiny, and broader export-control enforcement may target other AI firms. DeepSeek’s advanced AI models are available on major global cloud platforms, showcasing strong technological capabilities and integration with leading infrastructure providers.

Privacy advocates and lawmakers are likely to intensify calls for tighter data-security regulations, as DeepSeek’s cooperation with Chinese authorities raises concerns over foreign access to American user information. This case underscores growing U.S.-China tensions in technology and may prompt revisions to export rules, cloud-provider oversight, and multilateral efforts to secure AI supply chains.



Read more at Nasdaq: US Official Accuses DeepSeek of Sharing Data with Chinese Military