China’s DeepSeek has been making waves in the AI world, and it seems like the company is not backing down from its ambitions. Despite US export controls aimed at limiting China’s access to advanced technology, DeepSeek is reportedly using NVIDIA’s high-end H100 AI chips for military purposes, including intelligence operations for the Chinese government. 
The company, which has gained prominence as the nation’s largest AI firm, has even been linked to the military through procurement records and backend infrastructure that transmits American data to Chinese entities.
DeepSeek’s AI model, R1, made headlines by performing efficiently with less computational power compared to what big tech companies typically use. But the company’s connections with China’s military have sparked concerns. According to a Reuters report, DeepSeek’s collaboration with the Chinese military involves using information from millions of users worldwide, including data from major companies like Amazon, Google, and Microsoft, which offer DeepSeek’s language models to their customers. The AI firm reportedly has shell companies in Southeast Asia, where it uses data centers to remotely access high-end AI chips like NVIDIA’s H100.
While the US has yet to impose restrictions on DeepSeek’s operations within its borders, its alleged violations of US export controls and close ties with China’s military raise questions about national security. The Trump administration may soon find itself considering whether to ban the company, which has become a key player in China’s state-driven AI efforts. Given China’s previous methods of sourcing technology through countries like Malaysia and Singapore, it’s clear that the US’s efforts to contain China’s AI ambitions are facing significant challenges.
With growing concerns over national security, all eyes are on how the US might respond to DeepSeek’s actions. The company’s growing influence in China’s AI sector and its military connections will likely be a major topic of discussion in future diplomatic and trade negotiations.