- U.S. legislators are investigating how DeepSeek might have obtained Nvidia chips in spite of export restrictions.
- They similarly alleged that DeepSeek was transferring personal information from American users to the Chinese government.
- The legislators called for tighter export regulations aimed at curbing China's progress in artificial intelligence and restricting its data accessibility.
U.S. legislators are examining the implications of sophisticated technology Nvidia Chips might have ended up with the Chinese AI firm DeepSeek, which has been accused of espionage against Americans on behalf of China.
The House Representatives issued a report on Wednesday claiming that "DeepSeek secretly channels American user data to the Chinese Communist Party, distorts information to match CCP propaganda, and was developed using content illegally acquired from U.S. AI models."
The legislators — Representatives John Moolenaar, a Republican from Michigan, and Raja Krishnamoorthi, a Democrat from Illinois — stated that it seemed DeepSeek The firm, which unveiled a potent AI model that garnered significant attention in January, utilized 60,000 NVIDIA chips even though U.S. sanctions restricted the company’s capacity to supply certain hardware to China.
NVIDIA is already experiencing a difficult week. stock fell Nearly 7% of the stock dropped on Wednesday following the announcement that the Biden administration would demand a fresh licensing process for all advanced chips being shipped to China. The corporation also stated they anticipate their profits will reduce by around $5.5 billion as a result of the tariffs imposed during the Trump administration.
DeepSeek and a spokesperson for Moolenaar didn't reply to Business Insider's request for comments regarding the report.
Moolenaar stated in a release that DeepSeek is not merely an additional AI application but rather a tool of the Chinese Communist Party intended for spying on Americans, stealing their technological advancements, and undermining U.S. laws. He characterized DeepSeek as a significant national security risk to the United States.
The legislators stated that Nvidia CEO Jensen Huang oversaw the development of chip designs to bypass U.S. export restrictions.
They additionally dispatched a letter to Huang asking for lists of clients based in China and Southeast Asia along with any exchanges between Nvidia and DeepSeek.
Nvidia stated to Business Insider that “the U.S. government dictates what American businesses can sell and where; we strictly adhere to these directives.”
The firm additionally mentioned that it distributes its goods globally to various businesses, noting that the revenue figure from Singapore reflects the billing locations of these customers, with numerous entities being branches or subsidiary firms of American corporations.
As per the declaration, the related items are dispatched to various destinations such as the United States and Taiwan, but not to China.
The lawmakers' report additionally concluded that it was probable DeepSeek had implemented strategies to replicate prominent AI models from U.S. firms, thus breaching these companies’ terms of service.
According to the report, OpenAI informed legislators that DeepSeek staff bypassed OpenAI's safeguards to expedite their model development more cheaply.
OpenAI mentioned in January that they were looking into whether DeepSeek utilized the results from its AI models for "improper" training of their own models.
The report also found that 85% of responses from DeepSeek models purposefully suppress content related to democracy, Taiwan, Hong Kong, and human rights, the statement said.
The suggestions in the report entail enhancing the efficiency of US operations. export control policy Moreover, limiting China’s capacity to create and implement sophisticated AI models by broadening restrictions on chip exports.
They similarly urge Congress to think about mandating that chip manufacturers monitor the ultimate users of their products, rather than just focusing on the buyers.
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