US Launches Probe into Singapore’s Role in Supplying NVIDIA AI Chips to China

In an intriguing turn of events, the United States has launched an investigation into whether DeepSeek managed to obtain NVIDIA’s AI chips via intermediaries in Asia, aiming to identify any potential trade loopholes.

In response to DeepSeek’s recent achievements, the U.S. appears more determined than ever to prevent its advanced technology from reaching adversarial nations, such as China. Despite the stringent export controls and restrictions in place, it seems that countries like China still somehow have access to NVIDIA’s top-tier AI chips, including the H100 models. As Bloomberg reports, U.S. officials are now examining whether these chips were funneled to Chinese companies through countries like Singapore, a discovery that could carry severe repercussions if the suspicion proves true.

But why focus on Singapore? Citing data from @KobeissiLetter, it’s indicated that NVIDIA’s sales to Singapore skyrocketed by a staggering 740% since DeepSeek’s inception. Given Singapore’s relatively minor role in the global AI race, this sharp increase raises legitimate concerns about potential loopholes. Interestingly, NVIDIA has admitted that the billing and end-user locations might differ, suggesting they are aware of workarounds regarding U.S. restrictions.

A compelling tweet from The Kobeissi Letter echoes these concerns: “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.”

Further fueling these concerns is the report that China has imported far more chips from Singapore than the U.S. Typically, with only 99 data centers in Singapore, these figures are indeed disconcerting. For context, DeepSeek is said to possess computing resources valued at over $1.6 billion, housing around 10,000 of NVIDIA’s “China-specific” H800 AI GPUs, and another 10,000 of the advanced H100 AI chips. This indicates that China still has access to state-of-the-art AI technology, rendering current U.S. measures ineffective for the moment.

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Singapore isn’t the sole focal point of these investigations; countries such as the Philippines are purportedly linked to supplying these chips to China as well. With the U.S. considering a formal investigation, NVIDIA’s revenue from AI technologies, which accounts for a notable portion of their business, could be at risk. Should the U.S. decide to shut down this trade loophole, the implications could be far-reaching, affecting not only NVIDIA but the broader AI market landscape.