Washington launches first congressional probe into Nvidia, citing national security risks linked to DeepSeek
The United States has intensified scrutiny of Chinese AI firm DeepSeek and its chip supplier Nvidia, amid fears that China’s rapid technological progress could undermine American global influence.
Congressional Probe Into Nvidia Begins
US officials have begun a sweeping crackdown on DeepSeek, a rising Chinese AI startup, and Nvidia, the leading American chipmaker whose technology fuels much of the global AI sector. On April 16, the House Select Committee on the Chinese Communist Party opened its first-ever investigation into Nvidia’s sale of AI chips to buyers across Asia, following reports that DeepSeek accessed thousands of advanced chips—some of which were meant to be restricted.
DeepSeek’s Rise Sparks US Alarm
DeepSeek sparked concern in January after unveiling DeepSeek-V3, a powerful AI model reportedly trained on just US$6 million, a fraction of what US companies typically spend. The claim challenged the prevailing belief that only well-funded firms could lead in AI, triggering a 17% plunge in Nvidia shares and wiping out US$600 billion in market value. The Biden-era chip restrictions, now under the Trump administration’s enforcement, aim to curb China’s access to such breakthroughs.
Nvidia Faces Sales Restrictions, Congressional Pressure
Commerce Secretary Howard Lutnick confirmed that Nvidia must now apply for licences to export its modified H20 chips to China, following suspicions that DeepSeek had acquired 60,000 Nvidia chips—20,000 of which were not supposed to be sold to Chinese entities. The committee is demanding Nvidia disclose every client in 11 Asian countries, including Singapore and Malaysia, who purchased 500 or more chips since 2020. It may call hearings after its investigation concludes.
Authorities are investigating whether DeepSeek obtained chips through intermediaries in Singapore. In February, Singapore police arrested three individuals accused of illegally exporting restricted Nvidia chips to China. US lawmakers suspect such grey-market transactions helped DeepSeek bypass export controls and train large-scale models, posing a direct challenge to America’s AI leadership strategy.
US Strategy Centers on Chip Dominance
Klon Kitchen, senior fellow at the American Enterprise Institute, emphasized that Washington’s entire AI containment policy rests on controlling the global AI chip supply. If China surpasses the US in AI capabilities, it could reshape military power, influence global digital infrastructure, and reduce reliance on US technology. The crackdown reflects growing bipartisan consensus to tighten export rules and penalize companies undermining national security.
Market Fallout and Corporate Defense
Following the enforcement announcement, Nvidia, AMD, and ASML stocks each dropped over 6% on April 16. Nvidia spokesperson John Rizzo defended the company, stating it strictly complies with US export controls and contributes to national security through jobs, taxes, and technological leadership. ASML, another key semiconductor firm, also reported disappointing equipment orders as trade restrictions ripple through the global chip market.
As geopolitical competition intensifies, Washington’s actions signal a sharper line on tech exports and AI development. For Southeast Asia and global markets, these moves foreshadow tighter regulatory scrutiny and shifting supply chain dynamics, especially as countries like Singapore become focal points in the semiconductor showdown.
Sources: The Straits Times (2025), The New York Times (2025)
Keywords: DeepSeek China AI, Nvidia Chip Sales, US Tech Sanctions, AI Chip Export Rules, Washington Beijing Tensions
