smuggled

The Chinese artificial intelligence startup DeepSeek would have been training his next model with thousands of NVIDIA Blackwell chipsthe most advanced on the market and whose export to China is expressly prohibited by the United States. So The Information states itciting six sources close to the company, who claim that the chips would have arrived in the country through smuggling. ANDl alleged smuggling scheme. According to the media, the chips would have been acquired legally through data centers in countries where their sale is allowed. Once installed and inspected by NVIDIA or its authorized distributors such as Dell or Super Micro Computer, the servers would have been disassembled and the components would have been shipped to China in separate pieces, passing customs under false declarations. This method would allow no trace of the end user to be left. The response of NVIDIA. The company has flatly denied these accusations in a statement: “We have not seen any evidence or received notices of ‘ghost data centers’ built to deceive us and our OEM partners, which are then dismantled, smuggled and rebuilt elsewhere.” NVIDIA adds that, although this type of smuggling “seems implausible,” it investigates any information it receives about it. Why Blackwell chips are so valuable to DeepSeek. NVIDIA’s Blackwell processors began shipping in the final quarter of 2024, with companies like Google, Microsoft, and OpenAI being the first to receive them. These chips include specialized hardware to accelerate sparse computing (Sparse Computing), executing this type of calculations up to twice as fast as traditional methods. According to The Information, DeepSeek would have been using a technique called “sparse attention” that activates only certain parts of the model to respond to requests instead of the entire model, which significantly reduces inference costs. Blackwells would be especially useful for this approach, although their application in larger models is proving more complicated than anticipated. Geopolitical context. US President Donald Trump came to boast to Chinese leader Xi Jinping that Blackwell chips are “10 years ahead of any other chip” and that he would not allow China access to them. However, this week Trump authorized the sale of H200 chips from NVIDIA to China, a generation before the Blackwells, although Beijing is still considering whether to allow its acquisition. Of course, this measure could reduce demand for smuggled Blackwell chips in the Asian country. lThe difficulties of enforcing restrictions. Most NVIDIA chips are manufactured in Taiwan and sold through a complex network of distributors around the world. Jacob Feldgoise, analyst at the Center for Security and Emerging Technologies at Georgetown University account to the media that “the burden of proof to enforce and prosecute chip smuggling cases is quite high. Clear and convincing evidence is needed.” DeepSeek remains silent. The Chinese startup has not responded to the allegations. Previously, DeepSeek had trained its models with older NVIDIA chips: 10,000 A100 units stored by its parent company, hedge fund High-Flyer Capital Management, before US export restrictions took effect in 2022. The company’s research documents from last year indicated that they also had used hopper chipsthe generation immediately before Blackwell. DeepSeek faces several sticks from Washington: in April, the House Select Committee on the Chinese Communist Party published a report calling the startup “a profound threat” to American national security, accusing it of illegally using export-controlled NVIDIA chips. Qregulatory repression. NVIDIA confirmed this week that it has developed a verification technology location through software that could indicate in which country its chips operate, although it has not yet been launched. This tool would use the computing capabilities of your GPUs to monitor the performance and location of the processors. The company has clarified that this is read-only software that does not allow NVIDIA to remotely control the chips or disable them. “There is no off switch,” the company said. Cover image | DeepSeek, Xataka with Mockuuups Studio and NVIDIA In Xataka | If anyone thought that Europe had no role in the race for AI, Mistral has something to tell them