US Investigation: Is Singapore Supplying NVIDIA AI Chips to China? Team Green’s 20% AI Revenue at Risk

The United States is currently examining the potential of DeepSeek obtaining access to NVIDIA’s AI chips through intermediaries in Asia, specifically looking into the implications of trade loopholes.

The DeepSeek Dilemma: US Intensifies Export Oversight Amid Trade Investigations

In the wake of the DeepSeek controversy, the US government is taking a renewed stance to prevent its proprietary technology from reaching adversarial nations such as China. Despite implementing stringent export controls, there are indications that countries like China continue to procure high-performance NVIDIA AI chips, including the advanced H100 models. A recent report from Bloomberg highlights that US officials are now probing whether these chips made their way to Chinese enterprises via nations like Singapore. The investigation could result in substantial repercussions if these loopholes are confirmed.

Why is Singapore under scrutiny? Data shared by @KobeissiLetter suggests that NVIDIA’s sales to Singapore skyrocketed by an astonishing 740% since the inception of DeepSeek. Given Singapore’s minimal engagement in the AI competition, this dramatic increase raises red flags regarding potential trade loopholes. NVIDIA itself has acknowledged discrepancies between billing locations and end-user destinations, hinting at their awareness of possible workarounds to existing US 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

Moreover, reports indicate that China has imported significantly more chips from Singapore compared to the US. With Singapore hosting only 99 data centers, the sheer volume of transactions appears concerning. To provide context, DeepSeek reportedly possesses sophisticated computational resources valued at over $1.6 billion, including approximately 10, 000 of NVIDIA’s “China-specific”H800 AI GPUs, alongside an equal number of top-tier H100 chips. This information suggests that China remains well-equipped with cutting-edge AI GPUs, raising questions about the effectiveness of US export restrictions.

Singapore is not the only country implicated; the Philippines also faces allegations of playing a role in the supply of chips to China. As the US prepares to conduct a formal investigation into these matters, the ramifications extend to NVIDIA’s substantial 20% revenue stream derived from AI sales. If the US takes decisive steps to close these trade loopholes, it could lead to significant market disruptions not just for NVIDIA but for the broader AI industry.

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