The Trump administration is considering imposing new restrictions on the Chinese AI lab DeepSeek, which could limit its ability to purchase Nvidia’s AI chips and potentially prevent Americans from accessing its AI services, according to a report by The New York Times on Wednesday.
AI Competition with China
These proposed restrictions are part of the broader efforts by the Trump administration to curb China’s rapid advancements in artificial intelligence (AI). Following DeepSeek’s rise to prominence in both Silicon Valley and on Wall Street, U.S. officials are considering multiple measures to prevent China from gaining access to key American technologies and market advantages.
More Export Restrictions
On Tuesday, the White House moved to strengthen existing export controls by limiting the sale of Nvidia’s AI chips to China. This follows earlier regulations established by the Biden administration, and now, with the growing influence of DeepSeek in the global AI landscape, the U.S. government is looking to further tighten the rules.
DeepSeek’s Impact on the US
DeepSeek’s popularity among U.S. AI developers has surged in recent months, partly due to its competitive pricing strategy. The lab’s cost-effective models have forced Silicon Valley companies to lower prices on their frontier AI models, creating increased competition within the industry. However, this rapid growth has raised concerns, particularly around allegations of intellectual property (IP) theft.
Allegations of IP Theft
OpenAI has accused DeepSeek of distilling its models and violating its terms of use, an accusation that adds to the ongoing scrutiny of the Chinese lab. The allegations suggest that DeepSeek may have used unauthorized methods to create some of its competitive models.
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