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The Trump administration is preparing sweeping new actions targeting China’s AI ambitions, with officials considering restrictions that would block Chinese startup DeepSeek from purchasing advanced AI chips from U.S. companies like Nvidia and potentially bar American users from accessing DeepSeek’s services, according to sources familiar with the matter.
The deliberations come amid rising concern in Washington over China’s accelerating progress in artificial intelligence and its potential to challenge U.S. technological dominance. The U.S. government has implemented this prohibition as part of a complete plan to block Chinese entities from obtaining control of essential American technological knowledge which shapes present and upcoming military weaponry systems and worldwide digital structure development.
On Tuesday, the White House implemented revised policy measures under the Biden administration to enhance AI chip export controls to China. These measures regulate the number of chips and their capabilities that are exported to foreign destinations. The additional restrictions are intended to prevent Chinese research from developing advanced AI systems through the development of manufacturing capabilities.
DeepSeek, a Chinese AI laboratory, continues to experience significant growth as a result of its cost-effective high-performance models, which attract a significant number of U.S.-based developers. Several U.S. technology businesses cut their prices and expanded their model offerings to remain competitive in the market as a result of the increasing prominence of DeepSeek. However, concerns about the origins of DeepSeek’s technology are now fuelling Washington’s efforts to restrict its reach.
OpenAI has alleged that DeepSeek used unauthorised techniques to replicate or distill its proprietary models, raising questions about potential intellectual property theft. These allegations have added urgency to the administration’s discussions, with officials examining whether DeepSeek violated export control laws or used illegally obtained model architectures to leap ahead in the AI race.
A formal investigation led by the House Select Committee on the Chinese Communist Party now reviews the AI chip distribution network of Nvidia across Asia. Members of Congress are interested in determining whether Nvidia provided sophisticated semiconductors to DeepSeek and other Chinese entities in a manner that exceeded the current regulatory frameworks.
Congress’s investigative inquiry is the initial to focus on Nvidia’s international business operations. The heightened supervision is indicative of a widespread concern among Americans that major technology companies may provide China with a strategic advantage through their ongoing business activities in the country.
According to U.S. officials, China can become the world leader in artificial intelligence systems for drone management and missile guidance as well as cybersecurity platforms unless new controls are established. Chinese AI dominance would reshape global power structures because various nations will depend on artificial intelligence platforms coordinated through Beijing.
In response to these concerns, the Trump administration is weighing whether to add DeepSeek to the Commerce Department’s Entity List, a designation that would severely limit the startup’s ability to access U.S. technologies. Additional measures under consideration include sanctions or executive orders that could prohibit American companies and citizens from using DeepSeek’s AI services altogether.
