Nvidia decries 'far-fetched' reports of smuggling in face of DeepSeek training reports — unnamed sources claim Chinese company is involved in Blackwell smuggling ring

A report alleges that Chinese AI firm DeepSeek is involved in a complex smuggling ring to illegally obtain Nvidia Blackwell GPUs for training its large language model. The scheme involves fake data centers in Southeast Asia used as fronts to move servers into mainland China, bypassing U.S. sanctions. Nvidia denies knowledge of such activities and is investigating any tips received. DeepSeek's reliance on Nvidia GPUs for its AI models, despite Chinese government pressure to use domestic products, highlights the importance of Nvidia's pre-training capabilities in the Chinese market. The Trump administration's decision to ease restrictions on Nvidia GPUs in China reflects a strategy to balance tech access while curbing Chinese tech advancement.