Singapore’s Ministry of Trade and Industry (MTI) issued a statement on Saturday, emphasizing the importance of U.S. companies adhering to both U.S. export controls and local laws. The statement comes amid growing concerns over the origin of the chips used by China’s DeepSeek for its AI model, which has caused disruption in the markets.
DeepSeek made waves earlier in the week by asserting that its large language model surpasses OpenAI’s capabilities while being much more cost-effective to train. However, doubts were raised regarding the source of the semiconductors utilized in DeepSeek’s R1 reasoning model, particularly due to U.S. restrictions on exporting advanced AI chips to China.
In response to the situation, U.S. officials have reportedly launched an investigation into whether DeepSeek procured advanced semiconductors from chipmaker Nvidia through third parties in Singapore, as reported by Bloomberg. A spokesperson from Nvidia confirmed that the chips utilized by DeepSeek were in compliance with export regulations.
MTI emphasized the importance of upholding the rule of law and ensuring compliance with export controls and domestic legislation. The ministry highlighted Nvidia’s assertion that most shipments associated with revenue from Singapore were destined for locations outside of the country and that shipments to Singapore were minimal.
Despite Singapore’s status as an international business hub with significant operations from major U.S. and European companies, MTI reiterated the need for all entities to abide by regulations. The ministry underscored the collaborative efforts between Singapore’s customs and law enforcement agencies and their U.S. counterparts in enforcing trade laws.
As the controversy surrounding DeepSeek’s AI model unfolds, U.S. lawmakers find themselves navigating unfamiliar territory, grappling with the complexities of American trade restrictions in the age of advanced technology. The situation serves as a reminder of the challenges posed by the global nature of modern commerce, where adherence to regulations across borders is crucial for maintaining integrity in trade relationships and upholding legal standards.