Key Takeaways
- A US lawmaker alleges Nvidia chips helped a Chinese AI firm, DeepSeek, develop models later used by China’s military.
- The chips in question are modified H20 GPUs exported to China under US rules.
- The revelation adds pressure on the Biden administration to tighten semiconductor export controls.
A senior US lawmaker has accused Nvidia of providing advanced chips that were used by a Chinese AI company to develop models later adopted by China’s military. This allegation intensifies the ongoing tech rivalry between Washington and Beijing.
The Allegation: From Civilian AI to Military Use
Representative Michael McCaul, Chairman of the House Foreign Affairs Committee, detailed the claim in a letter to Commerce Secretary Gina Raimondo. He stated that chips from Nvidia were used by DeepSeek, an AI firm founded by former Tencent employees.
DeepSeek developed a large language model that was later utilised by the People’s Liberation Army (PLA), specifically its Strategic Support Force responsible for cyber and electronic warfare.
“This is a clear example of why the export controls on advanced semiconductors are necessary,” McCaul said. “It is also a clear example of how the Chinese Communist Party uses civilian entities to advance its military objectives.”
Nvidia’s Modified Chips at the Center
McCaul identified the specific hardware as Nvidia’s H20 chips. These are modified versions the company created for the Chinese market to comply with existing US export restrictions, which bar the sale of its most advanced semiconductors to China.
Nvidia’s graphics processing units (GPUs) are critical for training complex AI models. The company declined to comment on the allegations, while DeepSeek did not immediately respond.
Mounting Pressure for Tighter Controls
The letter, dated July 2 and first reported by the Wall Street Journal, urges the Commerce Department to investigate potential violations and tighten export controls immediately.
“The Department of Commerce must take immediate action to prevent US technology from being used to advance the military capabilities of the Chinese Communist Party,” McCaul wrote.
The Commerce Department has not yet commented. The Biden administration is already reportedly considering new restrictions on AI chip exports to China.
The Broader US-China Tech Rivalry
This incident is a flashpoint in the wider technological conflict. The US has imposed a series of restrictions on advanced chips and chipmaking equipment, and blacklisted several Chinese firms.
In response, China has heavily invested in its domestic semiconductor industry and restricted exports of key chipmaking minerals. Both nations are pouring resources into AI and other emerging technologies, with the rivalry expected to intensify.
China consistently criticises US export controls as violations of trade rules and attempts to stifle its economic rise.
