By Anjali Kochhar
Singapore has stepped into the escalating U.S.-China AI chip battle, pledging to assist Washington in its investigation into how Chinese AI firm DeepSeek may have acquired Nvidia chips despite strict export controls. The move comes amid growing concerns that China is rapidly closing the AI technology gap with the U.S., potentially using restricted semiconductor tech to gain an edge.
With DeepSeek’s AI model shaking up the industry at a fraction of U.S. costs, officials are racing to uncover whether Nvidia’s H800 chips, designed specifically for China, were obtained through unauthorised channels. Singapore’s Ministry of Trade and Industry confirmed its cooperation, stating, “Questions have arisen over whether DeepSeek gained access to Nvidia chips that were subject to U.S. export controls through intermediaries in Singapore.”
DeepSeek’s AI Raises Security Concerns
The controversy erupted after DeepSeek launched its R1 AI model, which significantly undercuts U.S. competitors in pricing. A NewsGuard audit revealed alarming flaws in its chatbot, showing just 17% accuracy in delivering news while spreading false claims 30% of the time. Taiwan’s Ministry of Digital Affairs has since banned DeepSeek’s products from public offices, citing national security risks.
Nvidia, however, has denied any wrongdoing, stating there is no evidence that DeepSeek obtained restricted chips through Singapore. The company clarified that many global firms use their Singapore entities to legally purchase AI chips for international markets.
Trump and Nvidia CEO Discuss AI Leadership
Amid the growing concerns, President Donald Trump met with Nvidia CEO Jensen Huang at the White House. While the meeting was reportedly scheduled in advance, DeepSeek’s emergence and the broader AI rivalry between the U.S. and China were key discussion points. Trump hinted at possible tariffs on computer chips, signaling a tougher stance on AI exports.
The meeting comes as Washington considers tightening AI chip export restrictions. Lawmakers argue these measures are crucial to maintaining the U.S.’s technological dominance, but critics warn they could accelerate China’s domestic semiconductor development.
Stricter Export Controls on the Horizon?
With AI technology playing an increasingly significant role in global economic and military strategies, the U.S. is considering tightening export restrictions to maintain its competitive edge. Lawmakers argue that stricter controls are necessary to prevent China from advancing its AI capabilities using American technology. However, critics warn that these measures may backfire, pushing China to accelerate its own semiconductor development.
The ongoing investigation into DeepSeek highlights the fragile balance between global trade and national security. As the U.S. and its allies navigate these complex issues, the decisions made in the coming months could reshape the AI industry, redefine international semiconductor policies, and influence the future of technological competition.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.