Chinese artificial intelligence startup DeepSeek trained its latest AI model using Nvidia’s most advanced processor, the Blackwell, according to a senior official in the Trump administration. The development, disclosed on Monday, could amount to a breach of U.S. export restrictions.
U.S. authorities believe DeepSeek intends to strip out technical markers that could indicate the use of American-designed AI chips, the official said. The chips are thought to be installed in clusters at the company’s data centre in Inner Mongolia, China’s autonomous northern region.
The official did not specify how Washington obtained the intelligence or how DeepSeek may have acquired the processors, but stressed that U.S. policy is clear: “We’re not shipping Blackwells to China.”
Nvidia declined to comment. The U.S. Commerce Department and DeepSeek did not immediately respond to requests for comment.
In a statement, China’s embassy in Washington criticized what it described as the politicization of trade and technology issues, opposing the “overstretching” of national security concerns and broad application of export controls.
Speaking at a regular briefing Tuesday, Chinese Foreign Ministry spokesperson Mao Ning said she was not familiar with the details of the report, adding that Beijing has consistently outlined its position on Washington’s semiconductor export measures.
Confirmation by the U.S. government that DeepSeek obtained the chips — first reported by Reuters — could deepen divisions among policymakers in Washington over how far to limit China’s access to cutting-edge American AI semiconductors.
White House AI adviser David Sacks and Nvidia Chief Executive Jensen Huang have argued that allowing some advanced chip sales to China could discourage domestic rivals such as Huawei from accelerating efforts to rival U.S. firms, including Nvidia and Advanced Micro Devices.
However, critics warn that even commercially exported chips could ultimately be diverted for military applications, potentially strengthening China’s defense capabilities and narrowing the U.S. lead in artificial intelligence.
“This demonstrates why exporting any AI chips to China is so risky,” said Chris McGuire, a former National Security Council official under President Joe Biden.
“If China’s top AI firms are openly sidestepping U.S. export controls, it’s unrealistic to expect they would honor restrictions barring military use,” he added
