The U.S. government is considering new penalties to stop China’s AI company DeepSeek from getting American technology, according to a New York Times report on Wednesday. Officials are also discussing whether to block U.S. users from using DeepSeek’s services. This move comes as part of a wider effort to limit China’s access to advanced AI tools and chips.
US Government Targets DeepSeek Over AI Concerns
The launch of DeepSeek, a low-cost artificial intelligence (AI) model from China, has created waves in the global tech market. The U.S. sees this as a potential threat and is working to block the Chinese startup from using American-made chips and technology.
This is not the first time the U.S. has taken steps to slow China’s progress in AI. The government has already placed restrictions on chipmaker Nvidia, preventing it from selling its most advanced AI chips to Chinese companies.
Nvidia Faces New Export Limits
Nvidia, a leading AI chip company, is now under more pressure. This week, the Trump administration restricted its sale of the H20 AI chip to China. Nvidia announced that this decision could cost the company $5.5 billion in lost sales.
Since 2022, the U.S. has banned exports of Nvidia’s top-level chips to China. The goal is to prevent China from using advanced technology to boost its military power or gain an edge in global AI development.
“We are committed to following U.S. laws and working closely with the government,” said a spokesperson from Nvidia. “We are reviewing the latest rules to understand how they affect our operations.”
DeepSeek’s Rise Sparks Alarm
DeepSeek has grown quickly thanks to low prices and support from powerful chips. The company’s AI models have become popular both in China and internationally. U.S. lawmakers are now asking how DeepSeek was able to use Nvidia chips despite existing export bans.
The U.S. House Select Committee on China sent a formal letter to Nvidia. It asked for details about chip sales to China and Southeast Asia. Lawmakers want to know if Nvidia’s products were sold directly or indirectly to DeepSeek, which would be a violation of export rules.
Washington’s AI Crackdown Intensifies
The latest steps are part of a bigger strategy by the Trump administration to slow China’s growth in the AI race. The U.S. believes keeping control over advanced chips is key to staying ahead in technology and protecting national security.
In the past year, the U.S. has tightened export rules, increased monitoring, and pushed American companies to be more careful about who they do business with.
According to the New York Times, the White House and the Commerce Department are both involved in talks about how to handle DeepSeek. However, they have not made any official comments so far. DeepSeek has also stayed silent on the issue.
Growing Tech Tensions Between US and China
The battle over AI technology is just the latest chapter in a long-running tech conflict between the U.S. and China. Both countries are investing heavily in AI, quantum computing, and semiconductors.
The U.S. wants to make sure its most advanced tools don’t help foreign rivals. China, meanwhile, is pushing to become more self-reliant and reduce its dependence on U.S. technology.
“AI is the backbone of future global power,” said John Mearsheimer, a political science expert at the University of Chicago. “The country that leads in AI will shape the world’s future economy and security.”
What Comes Next?
The U.S. may soon announce new rules or penalties aimed at DeepSeek. This could include adding the company to a trade blacklist or banning American firms from working with it.
Experts say this would make it much harder for DeepSeek to continue growing, especially if it loses access to cutting-edge chips and cloud services provided by U.S. companies.
At the same time, the U.S. could face backlash from China, which has warned against what it calls “unfair trade restrictions.”
