The Trump administration is set to implement further restrictions on DeepSeek, the Chinese AI company that made waves in the tech world with its AI model launched in January. The new measures could restrict the company’s access to Nvidia semiconductor chips, crucial for its AI development, and might even lead to a total ban of the platform in the United States.
This development adds a new chapter to the ongoing dispute involving the US-based chipmaker. On Tuesday, Nvidia confirmed that the White House had already imposed limitations on the sale of certain AI chips to China, requiring future purchases to undergo a special licensing process. These restrictions are likely to hinder DeepSeek’s progress, especially since its AI model has quickly gained popularity among US developers, much to the dismay of the Trump administration, which aims to maintain its lead in the global AI race.
DeepSeek’s AI model, which debuted on January 20, has rapidly surpassed competitors like ChatGPT and Gemini, claiming the top spot on app stores in both Apple and Google. Its popularity in Silicon Valley has grown significantly, raising concerns among the administration and figures like Elon Musk, who are keen to ensure that China doesn’t gain dominance in AI technology.
The latest move is part of a broader trend, with the Trump administration determined to curb China’s influence in the AI sector. On Tuesday, Nvidia saw a 5% drop in its stock price after the announcement of the chip restrictions. In the past, Nvidia had found ways around US regulations, such as modifying its H100 chip to skirt performance limits set by the Biden administration.
The ongoing tensions between the US and China in the AI domain continue to escalate, with President Trump pushing for stronger measures to ensure American dominance.
