The Trump administration is considering imposing sanctions that would prevent the Chinese company Deep Seek from purchasing American technology and is discussing preventing Americans from accessing its services, according to The New York Times.
The Trump administration moved this week to restrict Nvidia's sale of AI chips to China.
The U.S. House Committee on China reported that it 'sent an official letter to Nvidia requesting answers about its sales to China and Southeast Asian countries, to verify whether its chips were used to run Deep Seek's AI models, and how that happened, despite U.S. export restrictions.'
Nvidia warned yesterday of a loss of $5.5 billion after Washington imposed restrictions on the export of H20 AI chips to China.
This move is the latest effort by Trump to limit China's access to advanced semiconductors.
The United States has banned the export of Nvidia's most advanced chips to China since 2022, fearing that China could use advanced technologies to build its military capabilities.
The launch of the low-cost Chinese AI model, Deep Seek, has raised tensions in the AI ecosystem, and since then, the U.S. government has taken steps to suppress the Chinese startup and support it from chipmaker Nvidia.
AI chips from Nvidia have long been a key focus of U.S. export controls, as U.S. officials aim to prevent the sale of the most advanced chips to China in an effort to maintain a lead in the AI race.
