Chinese artificial intelligence company DeepSeek has provided user data to China’s government and military while using shell companies to circumvent US semiconductor export restrictions, a senior State Department official told Reuters.
“We understand that DeepSeek has willingly provided and will likely continue to provide support to China’s military and intelligence operations,” the official said in an interview.
The Hangzhou-based company has access to substantial quantities of advanced Nvidia H100 chips despite US export controls, according to the official, who spoke on condition of anonymity. The company procured the chips after the United States banned Nvidia from selling the advanced processors to China, using Southeast Asian shell companies to obtain semiconductors that cannot be legally shipped to China.
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DeepSeek appears more than 150 times in procurement records for China’s People’s Liberation Army and defense-related entities, the official said. The company has also provided technology services to research institutions affiliated with China’s defense industrial base. Reuters said in its report that it could not independently verify the procurement data.
US lawmakers have previously alleged that DeepSeek transmits American user data to China through infrastructure connected to China Mobile, a Chinese state-owned telecommunications company.
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When asked whether the US would implement additional export controls against DeepSeek, the official said the department had “nothing to announce at this time.”
“We do not support parties that have violated US export controls or are on the US entity lists,” a Nvidia spokesman said in a prepared statement.
The allegations come as DeepSeek has gained international attention for AI models that reportedly match the performance of leading American systems at a fraction of the development cost.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
