U.S. Blocks China’s DeepSeek from Accessing Tech

The Trump administration considers penalties to prevent China's DeepSeek from acquiring U.S. technology and restricts American access to its services. Simultaneously, Nvidia's AI chip sales to China are under investigation for potential national security threats, facing a financial setback following export restrictions.

The Trump administration is evaluating the implementation of penalties that would restrict China's DeepSeek from purchasing U.S. technology. It is also considering limits on American access to this Chinese company's services, according to a report by the New York Times on Wednesday.

As part of its measures, the administration recently moved to curtail the sales of artificial intelligence chips by Nvidia to China. The House Select Committee, which examines national security threats from China, has initiated an investigation into Nvidia's chip transactions across Asia, the report noted.

The investigation aims to determine whether Nvidia consciously supplied DeepSeek with essential technology to further the development of AI, potentially breaching U.S. regulations, as mentioned in the NYT report. Nvidia has already alerted that it faces a $5.5 billion financial impact after the U.S. prohibited export of its China-specific AI processors. DeepSeek has yet to respond to a comment request from Reuters.

(With inputs from agencies.)