A U.S. lawmaker raised concerns that Chinese AI firm DeepSeek used NVIDIA's artificial intelligence chips. DeepSeek developed models potentially aiding China's military.
The U.S. government previously approved some sales of NVIDIA's H200 chips to China. These approvals carried restrictions intended to prevent military applications.
The lawmaker suggests sales to non-military entities in China still indirectly benefit the Chinese military. This development may prompt calls for tighter licensing and enforcement.
This news introduces significant geopolitical risk for NVIDIA, which views China as a substantial market. The issue highlights ongoing U.S.-China tensions over advanced technology. Scrutiny from U.S. officials could impact NVIDIA's future sales and stock performance, depending on resulting regulatory actions.