A senior Trump administration official has said Chinese AI company DeepSeek is preparing to release a new model that was trained on Nvidia's Blackwell chip, a piece of hardware Washington has barred from export to China. If accurate, the claim would suggest that one of the most tightly watched controls in the US-China technology rivalry may be easier to work around than policymakers had hoped.

The official, speaking in reporting carried by Investing.com, said the model is due as soon as next week and that DeepSeek may try to strip out technical signs of American chip use before launch. The official also linked the suspected Blackwell systems to a cluster in Inner Mongolia and said they may have been used in a distillation process, a method that can transfer capabilities from one model to another.

The allegation lands amid a broader crackdown on suspected chip smuggling routes. Tom's Hardware reported that Bain Capital-backed Bridge Data Centers has cut ties with Megaspeed International after a US inquiry into claims that Nvidia AI processors were diverted to China through subsidiaries in Malaysia and Indonesia. Separate reporting from the same outlet said US prosecutors have also charged former Super Micro Computer executive Yih-Shyan "Wally" Liaw and two others in a case involving the alleged rerouting of Nvidia-powered servers into China through a Southeast Asian front company.

At the same time, lawmakers in Washington are pressing for still tighter export rules. A bipartisan proposal known as the MATCH Act would broaden restrictions on chipmaking tools by targeting specific Chinese firms rather than individual facilities, closing off loopholes that have allowed advanced equipment to reach otherwise restricted groups. Together, the reports point to a fast-evolving contest in which US controls, Chinese procurement networks and the economics of AI development are increasingly colliding.

Source Reference Map

Inspired by headline at: [1]

Sources by paragraph:

Source: Noah Wire Services