Nvidia probed over how its chips may have been obtained by DeepSeek, which US lawmakers accused of spying for China

Core Insights - US lawmakers are investigating how Nvidia chips were acquired by the Chinese AI company DeepSeek, which is accused of espionage and manipulating information for the Chinese Communist Party (CCP) [1][3] - The report claims DeepSeek used 60,000 Nvidia chips despite US sanctions, raising concerns about national security [1][3] Nvidia's Situation - Nvidia's stock fell nearly 7% following the announcement of new licensing requirements for shipping accelerated chips to China, with an expected $5.5 billion decrease in earnings due to tariffs [2] - Nvidia stated it adheres to US government directives regarding sales and claims its products are sold globally, including to subsidiaries of US companies [4] DeepSeek's Activities - DeepSeek is described as a tool for the CCP, allegedly designed to spy on Americans and undermine US laws [3] - The report indicates DeepSeek may have copied AI models from US companies, violating terms of service, and that it suppresses content related to democracy and human rights in 85% of its responses [5][6] Recommendations and Policy Implications - The report suggests enhancing US export control policies and restricting China's access to advanced AI technologies by expanding chip export controls [7] - It also recommends that chip companies track the end users of their products, not just the initial purchasers [7]