Trump Tightens Grip on AI Technology Exports Amid DeepSeek's Disruption

The Trump administration is contemplating measures against China's DeepSeek, aiming to block its access to U.S. technology and possibly restrict American use of its services. Prompted by DeepSeek's AI models, U.S. officials focus on export controls involving Nvidia's AI chips to retain an edge in the global AI competition.

The Trump administration is considering imposing penalties on China's DeepSeek to block its acquisition of U.S. technology. Discussions are also underway about banning American access to its services, according to a New York Times report on Wednesday.

The recent introduction of DeepSeek's low-cost AI model has shaken the AI industry, prompting the U.S. government to intensify its measures against the Chinese start-up and its collaborator, Nvidia. Nvidia's AI chips are central to U.S. export controls as officials aim to withhold advanced chips from China to maintain a competitive edge in AI.

This week's move by the Trump administration restricts Nvidia's AI chip sales to China, with a reported $5.5 billion impact anticipated by Nvidia following the limitations on H20 chip exports. The restrictions align with previous U.S. efforts since 2022 to curb technology exports to China over concerns about their potential military uses.

(With inputs from agencies.)