The Trump administration is weighing new restrictions on Chinese artificial intelligence (AI) lab DeepSeek, a move that could limit its access to Nvidia’s AI chips and potentially block American users from engaging with its AI services, according to a recent report by The New York Times.
U.S.-China AI Rivalry Heats Up
These proposed measures are part of Washington’s broader strategy to slow down China’s AI development, as the country continues to close the technological gap with the U.S. DeepSeek’s swift rise — with growing influence from Silicon Valley to Wall Street — has put it on the radar of U.S. regulators concerned about national security and market competition.
Tightening Export Rules
Just a day earlier, the White House announced new steps to strengthen export restrictions on AI chips, particularly limiting the sale of Nvidia’s cutting-edge processors to Chinese firms. This follows similar regulations imposed during the Biden administration, aimed at cutting off China’s access to the hardware that fuels advanced AI models.
With DeepSeek gaining global market share, the U.S. is now considering additional measures to prevent further erosion of its technological lead.
DeepSeek’s Disruptive Growth and Pricing Strategy
DeepSeek has emerged as a favorite among AI developers in the U.S. in recent months, largely thanks to its aggressive pricing model. The affordability of its AI services has forced American companies, including major Silicon Valley tech giants, to reduce prices on their own models, intensifying competition across the sector.
Intellectual Property Concerns
Alongside the export clampdown, DeepSeek is also facing serious allegations of intellectual property theft. OpenAI has formally accused the Chinese lab of violating its terms of use and distilling its models to create competitive alternatives.
These concerns have amplified U.S. government scrutiny, as Washington evaluates further steps to curb DeepSeek’s growing footprint in the AI ecosystem.
