The U.S., Microsoft, and OpenAI Investigate DeepSeek for Restricted Chip Use and Potential Data Misappropriation

The United States of America, Microsoft, and OpenAI are currently investigating the Chinese startup DeepSeek for potential restricted use of advanced AI chips and unauthorized data acquisition.

Earlier this week, Bloomberg published an exclusive report revealing that Microsoft and OpenAI are working together on a new investigation as both companies suspect DeepSeek has been obtaining sensitive data through OpenAI’s API.

According to anonymous sources familiar with the matter, Microsoft’s security researchers noticed the unusual activity during the fall, violating OpenAI’s terms of service. The group obtaining OpenAI’s data could have removed the American startup’s restrictions.

Yesterday, Reuters revealed that the U.S. Commerce Department is investigating whether DeepSeek used advanced AI chips that are not available for export—as the U.S. increased its restrictions on chip sales and investments in China—to develop its powerful flagship AI model.

An anonymous source told Reuters that AI chips have been smuggled to China through organized networks from countries like Malaysia, the United Arab Emirates, and Singapore. A spokesperson from Nvidia said they have clients with entities in Singapore, but they insist on complying with the laws.

DeepSeek claimed they’ve been using Nvidia’s less advanced chips, such as the H800 and H20s, which could have been obtained lawfully.

These investigations follow the massive success of DeepSeek’s new AI model in the United States, where it reached the top spot on Apple’s App Store, raising concerns among Silicon Valley giants and causing Nvidia’s stock to drop significantly on Monday.