U.S. lawmakers are pressing former President Donald Trump to evaluate new restrictions on Nvidia chips that could potentially be used by China's rapidly growing AI company Deepseek, amid rising concerns about technological competition between the two nations.
The development comes as Deepseek's AI model has demonstrated the ability to deliver performance comparable to U.S. competitors while requiring significantly fewer chips, disrupting the established AI hardware market dominated by American companies like Nvidia.
The Chinese company's recent success has already impacted the tech sector, with its free AI assistant surpassing OpenAI's ChatGPT on Apple's App Store in the United States. This achievement triggered a notable selloff in tech stocks, particularly affecting companies involved in data center infrastructure.
Nvidia, which currently maintains a dominant position in the AI chip market with exceptionally high profit margins, could face increased pressure if new restrictions are implemented. The company's near-monopoly in high-performance AI chips has been a cornerstone of U.S. technological advantage.
The situation highlights the complex balance between maintaining U.S. technological leadership and managing international competition in the AI sector. The proposed curbs would add to existing restrictions on advanced chip exports to China, as policymakers grapple with national security implications of AI development.
This development occurs against the backdrop of Trump's recent announcement of a $500 billion private sector investment in AI infrastructure, demonstrating the strategic importance of AI technology in U.S. economic policy.
Industry experts note that Deepseek's emergence represents a shift in the AI landscape, suggesting that AI development costs might be lower than previously estimated, potentially reducing barriers to entry for new competitors in the global market.