According to Reuters, the US Department of Commerce investigated whether China-based DeepSeek obtained prohibited Nvidia H100 chips through intermediaries in Singapore and Malaysia as part of an organised smuggling network evading export laws.
The United States (US) is preparing to impose meticulous new restrictions on distributing advanced computer chips and other artificial intelligence (AI) technology to numerous countries, not just the few it has commonly regarded as adversaries.
According to officials, the new laws are meant to ensure that “the world’s AI runs on American rails” and remain out of the hands of “malicious actors” who could use it against the United States. The Biden administration stated that 18 allies and partners, including the UK, were spared from the restrictions.
DeepSeek, a Chinese artificial intelligence (AI) company, earned global attention when it topped app download rankings, causing US tech stocks to plummet. In January, it revealed its latest model, DeepSeek R1, an equal technology developed by ChatGPT-maker OpenAI in terms of capabilities while costing less than RM27 million to construct.
The Malaysian government takes seriously the allegations of being used as a transit location for smuggling Nvidia artificial intelligence (AI) chips to China, and it is dedicated to adhering to multilateral international export control standards.
“We firmly adhere to export control regulations under the Strategic Trade Act, which governs the export, transit, and transhipment of strategic goods, including semiconductors,” said Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz.
As Malaysia is on the rise with the application of AI and digital transformation across all industries, including construction, this allegation and restriction may affect the nation’s process towards the ultimate goal of digitalisation.
