U.S. Probes Singapore’s Role in Supplying NVIDIA AI Chips to China; 20% of Team Green’s AI Revenue in Jeopardy

The United States has decided to dig deeper into how DeepSeek might have circumvented restrictions to acquire NVIDIA’s advanced AI chips, possibly using intermediaries in Asia to exploit trade loopholes.

US Strengthening Export Rules Following DeepSeek’s AI Breakthrough

Following the upheaval with DeepSeek, American officials are taking a closer look at how their cutting-edge technology is ending up in nations that pose potential threats, like China. Despite a stringent set of export controls, countries including China continue to gain access to NVIDIA’s top-tier AI hardware, such as the H100 chips. A report from Bloomberg suggests that U.S. authorities are investigating whether these chips reached Chinese companies through countries like Singapore. If verified, this could have serious ramifications.

Now, why is Singapore under a magnifying glass? Information from @KobeissiLetter indicates that NVIDIA’s sales to Singapore have skyrocketed by 740% since DeepSeek was established. Given Singapore’s low profile in the AI development race, this dramatic increase raises questions about potential trade loopholes. Moreover, NVIDIA has acknowledged that the billing address might not match the end-user location, hinting at a possible loophole they’re aware is being used to skirt U.S. restrictions.

Did DeepSeek illegally buy Nvidia’s chips?

Since DeepSeek was founded, Nvidia’s sales to Singapore are up a WHOPPING +740%.

The US is now PROBING if DeepSeek bought Nvidia’s GPUs through third parties in Singapore.

This will have MASSIVE implications.

(a thread) pic.twitter.com/Jyxrd8zEIc

— The Kobeissi Letter (@KobeissiLetter) January 31, 2025

Besides this, reports suggest China has imported far more chips from Singapore than the U.S. Despite Singapore having only 99 data centers, this discrepancy is indeed concerning. For context, DeepSeek is reported to have technology assets valued over $1.6 billion and possesses around 10,000 of NVIDIA’s "China-specific" H800 AI GPUs in addition to 10,000 of the more advanced H100 chips. This indicates that China continues to have access to state-of-the-art AI technology, rendering current U.S. measures seemingly ineffective.

Additionally, Singapore isn’t the sole country under suspicion; places like the Philippines are also thought to be part of this shaky supply chain to China. With plans to initiate a formal probe, the U.S. risks jeopardizing NVIDIA’s 20% AI revenue stream if it decides to shut down these trade loopholes, an outcome that could ripple through the broader AI industry and impact more than just NVIDIA.