Reports claiming that Chinese AI startup DeepSeek is using smuggled Nvidia Blackwell chips to train its advanced models have sparked fresh debate on global chip security. The allegations come amid continued US restrictions on high-end processors being sold to China.
According to earlier reports, DeepSeek may have acquired Nvidia Blackwell chips through illegal backdoor networks. These claims suggest that the company is bypassing export controls to keep pace in the global AI race. However, Nvidia has denied having any evidence of such activities.
An Nvidia spokesperson said the company has “not seen any substantiation or received tips of phantom data centres,” though the chip maker acknowledged the seriousness of any claims involving smuggled hardware. The tech giant continues to dominate the AI sector, as its GPUs remain critical for developing and training modern AI systems.
The reliance on advanced chips has made Nvidia’s relationship with China a central point of debate among US lawmakers. Despite concerns, US President Donald Trump recently lifted restrictions on certain chip exports. Under the new decision, Nvidia can ship its H200 chips to “approved customers” in China, as long as the US receives 25% of the revenue. The move has attracted criticism from some Republican politicians.
DeepSeek gained major attention earlier this year with its reasoning model, R1, which achieved rapid popularity on app stores. The model was developed at a lower cost than several leading American AI systems. The company has signaled plans to develop domestic high-performance chips in China to reduce reliance on foreign hardware, especially as access to Nvidia Blackwell chips and similar processors becomes increasingly uncertain.
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As global competition for AI dominance intensifies, accusations of smuggling and questions surrounding export policies continue to fuel tensions between Washington, Beijing, and major chip manufacturers.
