DeepSeek reveals that it has smuggled NVIDIA Blackwell chips, which should be unavailable for new AI development, to China through complex routes

The Information reported that DeepSeek is illegally smuggling AI chips to develop new AI technologies.

DeepSeek is Using Banned Nvidia Chips in Race to Build Next Model — The Information
https://www.theinformation.com/articles/deepseek-using-banned-nvidia-chips-race-build-next-model

Nvidia decries 'far-fetched' reports of smuggling in face of DeepSeek training reports — unnamed sources claim Chinese company is involved in Blackwell smuggling ring | Tom's Hardware
https://www.tomshardware.com/tech-industry/artificial-intelligence/nvidia-decries-far-fetched-reports-of-smuggling-in-face-of-deepseek-training-reports-unnamed-sources-claim-chinese-company-is-involved-in-blackwell-smuggling-ring

Deepseek reportedly using thousands of smuggled Nvidia chips for AI training
https://the-decoder.com/deepseek-reportedly-using-thousands-of-smuggled-nvidia-chips-for-ai-training/

According to anonymous sources, DeepSeek is involved in a ring that uses fake data centers to smuggle chips based on Nvidia's Blackwell architecture, which is banned from export to China.

The smuggling ring used shell companies purporting to operate data centers somewhere in Southeast Asia to purchase NVIDIA servers. NVIDIA's OEM partners then sent contractors to inspect the server installations to ensure they were properly installed and in compliance with export regulations. Once the inspection was complete, the smugglers disassembled the servers, packed them into suitcases, and smuggled them into China, giving DeepSeek access to the latest AI chips.

A source familiar with smuggling in China said that smugglers and customers tend to prefer rack servers like the HGX B200 over the more powerful GB200 NVL72 because they are smaller and easier to smuggle.

DeepSeek, a Chinese AI company that gained attention for developing inference models at a similar level to OpenAI at just 3% of the cost , has long been suspected of importing high-performance NVIDIA chips, which are subject to export controls, and using them to train its AI.

The US is investigating the possibility that DeepSeek imported embargoed NVIDIA high-performance GPUs via Singapore - GIGAZINE

The Trump administration recently eased export restrictions on high-performance AI chips in December 2025, approving the export of NVIDIA H200 chips to China. Meanwhile, China is discussing restricting imports of H200 chips , leaving NVIDIA's future demand in the Chinese market unclear.

US Department of Commerce approves export of NVIDIA H200 chips to China - GIGAZINE

Experts at the AI Research Institute point out that if the H200 becomes available in China, companies like Alibaba, which have been barred from obtaining advanced American AI chips, could potentially run sophisticated AI at low cost.

The Trump administration has stepped up its crackdown to prevent the smuggling of AI chips, announcing on December 8 that it had 'successfully shut down a smuggling network linked to China,' and explaining that it had seized high-performance GPUs worth $50 million (approximately 7.79 billion yen).

Office of Public Affairs | US Authorities Shut Down Major China-Linked AI Tech Smuggling Network | United States Department of Justice
https://www.justice.gov/opa/pr/us-authorities-shut-down-major-china-linked-ai-tech-smuggling-network

In response to The Information's report, an NVIDIA spokesperson said, 'We have not been able to confirm the existence of any bases that would indicate smuggling, or the fact that servers were disassembled and imported as smuggling methods. We will investigate any information provided to us.'