Reuters — Chinese AI startup DeepSeek is reportedly assisting China’s military and intelligence agencies while attempting to bypass U.S. export controls to acquire restricted high-end semiconductors, including Nvidia’s H100 chips, through shell companies in Southeast Asia, according to a senior U.S. State Department official.
Alleged Military and Intelligence Ties
The official disclosed to Reuters:
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“DeepSeek has previously offered support to China’s military and intelligence entities and is highly likely to continue doing so.”
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The company was named over 150 times in procurement records linked to the People’s Liberation Army (PLA) and affiliated defense research institutes.
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It provided technical services to PLA-linked institutions.
Efforts to Evade U.S. Chip Restrictions
Since 2022, the U.S. has barred exports of Nvidia’s H100 and other advanced AI chips to China over concerns they could fuel military AI development or bolster China’s tech competition. The official alleged:
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DeepSeek sought to remotely access U.S. chips housed in Southeast Asian data centers via shell companies.
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The startup secured a significant number of H100 chips, though the exact quantity remains unclear.
The official declined to confirm whether DeepSeek successfully bypassed restrictions or provide details about the shell companies.
Broader Scrutiny and Legal Troubles
DeepSeek’s activities have drawn heightened attention amid U.S.-China tech tensions:
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In February 2025, Singapore charged three individuals with fraud in a case involving Nvidia chips allegedly diverted to DeepSeek.
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Earlier reports suggested DeepSeek possessed H100 chips, though far fewer than the 50,000 claimed by another AI firm’s CEO in a January CNBC interview.
Despite its open-source AI models (like DeepSeek-V3 and DeepSeek-R1) earning praise from Silicon Valley, the company faces mounting skepticism over its ties to Beijing’s strategic sectors.
No Blacklisting—Yet
Notably, the U.S. has not placed DeepSeek on any trade restriction lists, such as the Entity List, unlike other Chinese AI firms like SenseTime or iFlyTek.