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

The United States is scrutinizing how DeepSeek may have gained access to NVIDIA’s AI hardware via intermediaries in Asia, specifically examining potential loopholes in trade practices.

In the wake of DeepSeek’s breakthrough, the US government is doubling down on export restrictions, clearly anxious to prevent their advanced technology from landing in the hands of adversarial nations like China. Despite rigorous controls, reports from Bloomberg suggest that countries such as China still manage to obtain NVIDIA’s cutting-edge AI chips, like the H100s. US officials are currently investigating whether these chips might have reached Chinese firms through third-party channels in places like Singapore. If such loopholes are officially acknowledged, it could lead to significant repercussions.

Why the focus on Singapore, you might wonder? Well, data from @KobeissiLetter hints that NVIDIA’s transactions with Singapore have skyrocketed by an incredible 740% since the inception of DeepSeek. With Singapore not being particularly active in the AI race, this surge raises suspicions about a potential misuse of trade channels. Moreover, NVIDIA has admitted that at times, the billing location may not necessarily match the end-user’s location, a statement that acknowledges the existence of potential workarounds to US-imposed restrictions.

Additionally, China reportedly imports Bountiful quantities of chips from Singapore, far surpassing what the US counterparts manage. Considering that Singapore hosts only 99 data centers, the situation does seem rather alarming. For context, DeepSeek reportedly holds over $1.6 billion worth of computational resources, including around 10,000 of NVIDIA’s “China-specific” H800 AI GPUs and another 10,000 of the premium H100 AI chips. This paradoxically means China’s access to state-of-the-art AI GPUs remains largely unaffected, rendering US preventative measures rather ineffective at present.

Interestingly, Singapore isn’t alone in this narrative, as countries like the Philippines are also suspected of facilitating chip shipments to China. With the US contemplating a formal inquiry into this matter, NVIDIA’s substantial AI-driven revenue—constituting an estimated 20%—could face looming threats. An intervention by the US could have far-reaching consequences, potentially impacting not just NVIDIA but the broader AI market landscape as well.