No Love Lost Between DeepSeek and US
Wednesday’s report is just the latest twist in a long-running saga. On Tuesday, Nvidia confirmed that the Trump Administration had blocked some sales of its AI semiconductor chip to China. The restrictions represented the first “major limits” that the government had imposed on AI chips abroad – only to be blown out of the water a day later by the latest whisperings.
Nvidia, whose share price took a 5% hit following its announcement on Tuesday, has exploited loopholes in previous government directives in order to continue selling to China, which represents a highly lucrative market. Notably, it modified the performance of one of its chips, the H100, so that it fell below a threshold imposed by the Biden administration.
A couple of months ago, the state of New York banned government workers from downloading the app, in a move that is widely expected to set a precedent over the coming months. At the time, New York Governor Kathy Hochul cited “serious concerns… concerning DeepSeek AI’s connection to foreign government surveillance and censorship.”
