11th December 2025 – (Hangzhou) Chinese AI start‑up DeepSeek is allegedly using Nvidia chips restricted from export to China to develop its next generation of artificial intelligence models, according to a report by The Information.
Sources cited in the report claimed DeepSeek first approaches data‑centre operators outside mainland China through chip distributors to obtain Nvidia hardware. The distributors then purportedly remove the chips from servers—reportedly in jurisdictions where sales are permitted—before transporting the components into China.
The Information further reported that Nvidia’s latest Blackwell chips are allegedly being channelled into China through third countries, with devices installed in unnamed foreign data centres, certified by server equipment developers, then stripped out and shipped onwards.
Nvidia, for its part, said it has not seen substantive evidence or received reports confirming such activity. A company spokesperson stated that it has “not seen any evidence or reports of ‘ghost data centres’ being built to deceive us and our OEM partners, later dismantled, smuggled and reassembled elsewhere,” adding that while such smuggling “seems far‑fetched,” the firm would investigate any credible leads.
DeepSeek drew global attention in January after unveiling an AI model said to match leading Silicon Valley systems at substantially lower cost. The start‑up is backed by Chinese hedge fund High‑Flyer, which reportedly purchased 10,000 Nvidia GPUs in 2021, prior to US curbs on exporting high‑end Nvidia chips and other graphics processors to China.
In recent days, U.S. President Donald Trump approved exports of Nvidia’s H200 chips to China, while maintaining prohibitions on the more powerful Blackwell line. Concurrently, Beijing has been urging domestic tech firms to adopt home‑grown hardware for AI development. DeepSeek released a new model in September that hinted at collaboration with Chinese chip manufacturers.
