U.S. Investigates Singapore’s Role in Supplying NVIDIA AI Chips to China; 20% of Team Green’s AI Revenue at Risk

The United States is currently delving into whether DeepSeek managed to obtain NVIDIA’s AI chips via middlemen in Asia, potentially exploiting holes in trade laws.

In light of DeepSeek’s recent breakthrough in AI, US officials are pushing for stricter export controls, particularly focusing on potential loopholes in trade. Despite a robust framework of restrictions, nations like China have somehow managed to acquire NVIDIA’s top-tier AI chips like the H100s. As Bloomberg reported, authorities in the US are now assessing whether these chips reached Chinese firms through countries like Singapore, which could lead to significant repercussions if any loopholes are confirmed.

So, why is Singapore under the spotlight? According to data shared by @KobeissiLetter, there’s been a staggering 740% surge in NVIDIA’s sales to Singapore since DeepSeek’s inception. Singapore, not heavily invested in the AI arms race itself, becomes suspect as a conduit. NVIDIA, on their part, has acknowledged that sometimes the billing locale may differ from where the chips end up, hinting at their awareness of potential circumvention of US bans.

There’s even a tweet discussing the matter: “Did DeepSeek illegally buy Nvidia’s chips? Since DeepSeek was founded, Nvidia’s sales to Singapore are up a WHOPPING +740%. The US is now PROBING if DeepSeek bought Nvidia’s GPUs through third parties in Singapore. This will have MASSIVE implications.”

Furthermore, it appears China has imported more chips from Singapore than the United States has, a stark fact given that Singapore hosts only 99 data centers. For those who aren’t familiar, DeepSeek is believed to have computational resources pegged at over $1.6 billion, boasting around 10,000 of NVIDIA’s “China-specific” H800 AI GPUs and 10,000 of the more advanced H100 AI chips. This suggests that China has ample access to sophisticated AI hardware, rendering current US controls somewhat ineffective.

Adding to the mix, other nations, including the Philippines, are speculated to be involved in routing chips to China. With the US on the brink of launching a formal inquiry, NVIDIA’s AI revenue stream, which accounts for about 20%, could be under threat. Should the US manage to clamp down on this trade loophole, it could spell severe implications not just for NVIDIA but the broader AI sector as well.