DeepSeek aids China's military and evaded export controls, US official says

A senior U.S. State Department official alleges that Chinese AI firm DeepSeek supports China's military and intelligence operations, sharing user data with Beijing and circumventing U.S. export restrictions on advanced semiconductors. DeepSeek, based in Hangzhou, reportedly used Southeast Asian shell companies to access restricted Nvidia H100 chips, essential for AI model training, which are banned from export to China due to national security concerns. Although DeepSeek denies using H100 chips, U.S. officials remain skeptical, suspecting high dependency on U.S. technology. The firm has been mentioned in Chinese military procurement documents and praised for its AI models, claiming parity with top U.S. systems. However, experts question the legitimacy of its reported low training costs. Despite these allegations, DeepSeek has not been placed on U.S. trade blacklists, and Nvidia asserts it complies with export laws. The case highlights ongoing geopolitical tensions and scrutiny over technological transfers and military applications in the U.S.-China tech conflict.