The Trump administration is planning new restrictions on DeepSeek, the Chinese AI lab that sent shockwaves through the tech sector with the launch of its titular AI model in January this year. Reportedly, the President hopes to limit the company’s access to Nvidia chips, and potentially block US citizens from accessing the platform.
This marks the latest twist in a long-running saga, with the US-based chipmaker at its center. On Tuesday, the company revealed that the White House had restricted sales of some of its AI chips to China, and that future purchases would require a special license.
These moves are likely to stymie some of the progress that the Chinese company has made in recent months. Much to the Trump administration’s chagrin, DeepSeek has become a highly popular tool among AI developers in the US. The US is desperate to see off competition from the Eastern superpower in its bid to become top dog of the AI space.
Trump Administration to Place Further Restrictions on DeepSeek
The federal government is considering new sanctions against Chinese AI startup DeepSeek and its flagship model. Reportedly, the new restrictions would prohibit the company from buying Nvidia semiconductor chips, which have been instrumental in the unfolding AI race. It is also considering a total US ban on the platform.
Since its release in January 20 – notably, the day of President Trump’s inauguration – the AI model has been something of a revelation across the world. Within days of its rollout, it quickly supplanted the likes of ChatGPT and Gemini to secure coveted top spot on the Apple and Google app stores.
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In the interim, it has become increasingly popular with Silicon Valley AI developers themselves, in a development that is unlikely to be warmly met by the President and his close confidante, Elon Musk.
No Love Lost Between DeepSeek and US
Wednesday’s report is just the latest twist in a long-running saga. On Tuesday, Nvidia confirmed that the Trump Administration had blocked some sales of its AI semiconductor chip to China. The restrictions represented the first “major limits” that the government had imposed on AI chips abroad – only to be blown out of the water a day later by the latest whisperings.
Nvidia, whose share price took a 5% hit following its announcement on Tuesday, has exploited loopholes in previous government directives in order to continue selling to China, which represents a highly lucrative market. Notably, it modified the performance of one of its chips, the H100, so that it fell below a threshold imposed by the Biden administration.
A couple of months ago, the state of New York banned government workers from downloading the app, in a move that is widely expected to set a precedent over the coming months. At the time, New York Governor Kathy Hochul cited “serious concerns… concerning DeepSeek AI’s connection to foreign government surveillance and censorship.”
Trump’s Determined to Keep a Lid on China Progress
The DeepSeek shakeup is just one flashpoint in the unfolding hostilities between the US and China, which have reached fever pitch since the start of President Trump’s second tenure.
Among a litany of aims, the President hopes to best China in the AI race, in which the two superpowers are currently locked in a fierce contest. A few weeks ago, a Chinese startup unveiled Manus AI, thought to be the world’s first fully autonomous AI chatbot. Meanwhile, in January, Trump announced funding to the tune of $500 billion for his Project Stargate project.
The President will hope that by clamping down on China’s access to Nvidia semiconductor chips, he can secure decisive footing in this fast-moving saga.
