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Insider Reveals DeepSeek is Supporting Chinese Military to Evade US Sanctions

Insider Reveals DeepSeek is Supporting Chinese Military to Evade US Sanctions

(Deutsche Welle) A senior US government official stated in an interview with Reuters on Monday that the AI company DeepSeek is providing support to the Chinese military and intelligence community, attempting to bypass US export restrictions on high-performance processors through shell companies in other countries. He noted that DeepSeek's support to the Beijing government extends beyond merely providing access to its open-source software. Additionally, DeepSeek has been sharing user information and statistical data with authorities.

The insider revealed that DeepSeek has appeared in procurement documents related to the Chinese People’s Liberation Army and affiliated institutions over 150 times. Reuters could not independently verify this information and could not reach DeepSeek for comment. Under Chinese law, companies are required to provide data to the government upon request. If DeepSeek has shared information with the government, it could jeopardize the data protection of millions of foreign users. Previously, US legislators have accused DeepSeek of transferring US user data to China.

In April, South Korean regulators released findings indicating that DeepSeek had unlawfully transferred Korean user information and input content to companies in China and the US. The insider emphasized that DeepSeek has also secured access to a “large” number of NVIDIA's dedicated AI processors, which are currently subject to US export restrictions. He stated, “DeepSeek is attempting to evade export restrictions through shell companies in Southeast Asia.” Furthermore, DeepSeek is trying to access data centers in Southeast Asia to remotely use American chips. The insider did not provide further details and was unwilling to disclose whether DeepSeek's actions have been successful.

Reuters could not contact DeepSeek or the Chinese government for comments. NVIDIA emphasized that it does not support any evasion of export controls or clients on the US sanctions list. Due to stringent restrictions, NVIDIA has effectively been excluded from the Chinese market, losing ground to competitors like Huawei. Chinese companies can utilize US chips in foreign computing centers, provided they are not on the sanctions list or have no evidence of participation in developing weapons of mass destruction. DeepSeek is currently not on any blacklist.

Local media reported that a few months ago, three suspects were tried in Singapore for allegedly transferring high-end NVIDIA chips to DeepSeek. DeepSeek's AI technology has caused a sensation globally earlier this year, with performance levels comparable to Western competitors like OpenAI's ChatGPT and Google's Gemini, while development costs reportedly being a fraction of those typically incurred. Additionally, the computational power required by the software is said to be lower than that of its competitors.