The US Commerce Department is considering whether the DiPsic – Chinese company whose AI model’s performance has shook the tech world – it is using US chips that are not allowed to send to China.

China’s DPCAC launched a free assistant last week, stating that US models use less data at a cost. Within a few days, it became the most downloaded app in Apple’s App Store and raised concerns about the United States superiority in AI, making a trillion away from US technology stock (about 86,63 , Rs 626 crore) was wiped out.

NVIDIA artificial intelligence (AI) processors are to prevent its most sophisticated chips from reaching China.

Sources said that organized AI chip smuggling for China has been organized from countries including Malaysia, Singapore and the United Arab Emirates.

The Commerce Department and the Dippec did not immediately return the comments requests.

An N. Vidia spokesman said many of its users have businesses in Singapore and they use these companies for products made for the United States and the West.

“We insist that our partners comply with all applicable rules, and if we receive any information on the contrary, act accordingly.”

DiPsic says it has used NVIDIA’s H800 chips, which he could legally buy in 2023. Reuters could not determine whether DPCAC had used other controlled chips that were not allowed to be sent to China.

DPCAC also has seemingly less powerful H20S of NVIDIA, which can still be sent to China legally. The United States considered them to be controlled under the Biden administration, and newly appointed Trump officials are also discussing it.

The CEO of AII Company’s Anthropic, Dario Amody said earlier this week, “It appears that a large portion of the Dipic’s AI chip fleet contains chips that have not been banned (but Should be), the chips were banned;

The United States has placed a raft of sanctions, leaving China’s exports to AI chips, and plans to reach its shipment to many other countries.

© Thomson Writers 2025

(This story has not been edited by the NDTV staff and has been made auto from the Syndicate Fed.)

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