DeepSeek reportedly using smuggled Nvidia Blackwell chips for AI model development

Chinese AI startup DeepSeek is developing its next major AI model using thousands of Nvidia’s advanced Blackwell chips that are banned from export to China, according to a report from The Information, citing six sources familiar with the situation.

The Blackwell chips were reportedly smuggled into China through a complex operation involving initial shipment to data centers in approved countries, followed by server dismantling and importing the components in pieces to China.

Most Nvidia chips are produced in Taiwan and distributed through a complex global network of distributors and resellers.