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

The United States has kicked off a new investigation, digging into whether DeepSeek managed to get its hands on NVIDIA’s AI chips through third-party channels in Asia. The focus seems to be on spotting possible ways to circumvent trade restrictions in place.

Following the debacle with DeepSeek, the U.S. has become increasingly vigilant about safeguarding its cutting-edge technology from potentially unfriendly nations, such as China. Despite stringent export controls, Chinese firms reportedly still have access to NVIDIA’s top-tier AI processors, such as the H100 series. According to Bloomberg, American officials are now scrutinizing potential pathways like Singapore, which might have played a role in facilitating these transactions. If a loophole is indeed uncovered, the aftermath could be quite serious.

So why is Singapore under the microscope? The buzz is centered around data from a source known as @KobeissiLetter, which indicates that NVIDIA’s sales to Singapore skyrocketed by an astonishing 740% since DeepSeek came into the picture. Singapore itself isn’t typically a major player in the AI industry, so this surge in sales has set off alarm bells. Adding fuel to the fire, NVIDIA has confessed that often the billing location differs from where the chips end up, hinting at loopholes being utilized as a workaround against U.S. restrictions.

Additionally, China has been reported to receive significantly more chips from Singapore than the U.S., even though Singapore only hosts 99 data centers. This discrepancy adds to the concern. For those not in the know, DeepSeek is believed to wield computational power valued at over $1.6 billion and holds around 10,000 of NVIDIA’s “China-specific” H800 AI GPUs and another 10,000 of the more advanced H100 chips. Clearly, China isn’t struggling to find the cutting-edge tech it desires, indicating that current U.S. measures might not yet be hitting the mark.

But it’s not just Singapore that’s being talked about; rumors have surfaced about countries like the Philippines also playing a part in channeling chips to China. With the U.S. gearing up for a formal investigation, there’s a lot at stake for NVIDIA, who could see up to 20% of its AI revenue hanging in the balance. Even more broadly, if the U.S. acts to close this trade loophole, the ripple effect could be significant for both NVIDIA and the global AI markets as a whole.