DeepSeek Nvidia chip questions: Singapore responds

Singapore’s Ministry of Commerce and Business (MTI) stated in a press release Saturday that it expects U.S. firms to adjust to U.S. export controls and native legal guidelines, following questions over the chips utilized by China’s DeepSeek to supply its AI mannequin.

Markets have been rocked this week after DeepSeek claimed its giant language mannequin outperforms OpenAI’s however value a fraction of the value to coach. Nevertheless, questions have been quickly raised over the provenance of the semiconductors used to construct DeepSeek’s R1 reasoning mannequin given U.S. restrictions on exporting superior AI chips in China.

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Bloomberg on Friday reported that U.S. officers have been investigating whether or not DeepSeek had purchased superior semiconductors from chipmaker Nvidia through third events in Singapore.

A Nvidia spokesperson informed CNBC Monday that the chips utilized by DeepSeek have been absolutely export-compliant. DeepSeek was not instantly accessible for remark when contacted by CNBC.

“We count on US firms, like Nvidia, to adjust to US export controls and our home laws. Our customs and regulation enforcement businesses will proceed to work carefully with their US counterparts,” MTI stated in its assertion.

“We’ve got at all times upheld the rule of regulation, and acted decisively and firmly in opposition to people and firms that flout the foundations.”

The DeepSeek AI application is seen on a mobile phone in this photo illustration taken in Warsaw, Poland on 27 January, 2025.

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In its third-quarter outcomes printed in November, Nvidia stated that Singapore accounts for nearly 22% of its income however added that: “most shipments related to Singapore income have been to places aside from Singapore and shipments to Singapore have been insignificant.”

MTI cited Nvidia’s feedback in its Saturday assertion and stated the chipmaker stated there was no motive to consider that DeepSeek had obtained any export-controlled merchandise through Singapore.

“Singapore is a world enterprise hub. Main US and European firms have important operations right here. Nvidia has defined that many of those clients use their enterprise entities in Singapore to buy chips for merchandise destined for the US and different Western international locations,” MTI added.

— CNBC’s Ryan Browne contributed to this report.