U.S. Launches Probe into Singapore’s Potential Role in Supplying NVIDIA AI Chips to China

The United States has turned its focus on whether DeepSeek managed to obtain NVIDIA’s AI chips via intermediaries in Asia, possibly exploiting gaps in trade regulations.

DeepSeek’s AI Milestone Leads the US to Strengthen Export Rules and Scrutinize Trade Gaps

Following the DeepSeek controversy, US authorities are determined to safeguard their technological advancements from falling into the hands of rival countries like China. Despite increasingly stringent export controls and restrictions, these nations, including China, are still managing to secure NVIDIA’s top-tier AI chips, such as the H100s. In a recent development, Bloomberg reveals that US officials are investigating if these chips ended up with Chinese companies through regions like Singapore. If this loophole exists, it could lead to significant repercussions.

So, why focus on Singapore? Data from @KobeissiLetter highlights a jaw-dropping 740% surge in NVIDIA’s sales to Singapore since DeepSeek’s inception. Given Singapore’s minimal involvement in the AI race, this massive increase raises red flags about potential loopholes. Moreover, NVIDIA has acknowledged that their billing and end-user locations might not match, hinting they might be aware of these loopholes as potential routes around US restrictions.

The possibility of DeepSeek illegally acquiring NVIDIA’s chips is further complicated by reports that China imported significantly more chips from Singapore than from the US. Considering Singapore only hosts around 99 data centers, these imports are particularly concerning. It’s worth noting that DeepSeek is reputedly equipped with computational assets valued at over $1.6 billion, boasting 10,000 of both NVIDIA’s “China-specific” H800 AI GPUs and the high-end H100 AI chips. This indicates that China might be far from struggling to obtain cutting-edge AI GPUs, challenging the effectiveness of the US’s current measures.

Yet, Singapore isn’t the sole focus. Other countries, like the Philippines, have also been suggested as potential sources of chips for China. As the US gears up for a formal inquiry, there’s an undeniable risk not just for NVIDIA’s 20% AI market share, but for the broader AI industry. Should the US eliminate this trade gap, the impact could be severe for NVIDIA and the future of AI technology.