Singapore Clarifies Its Role in Nvidia Sales Amid U.S. Probe Into DeepSeek’s Chip Acquisitions

Singapore plays a minor role in Nvidia Corp.’s revenue, according to a senior official, amid U.S. scrutiny over whether Chinese AI startup DeepSeek has obtained Nvidia chips through the country.

Tan See Leng, Singapore’s Second Minister for Trade and Industry, informed lawmakers on Tuesday that the physical delivery of Nvidia products to Singapore accounted for less than 1% of the company’s total revenue in the three months ending in October 2024. He clarified that these shipments were primarily intended for major enterprises and government use.

Although Nvidia reported that 22% of its sales during the August-October period were attributed to Singapore, Tan explained that this figure reflects where customers were billed rather than where products were physically delivered. He noted that global companies often centralize billing in specific locations, which does not necessarily indicate where goods are shipped.

The U.S. government, under President Donald Trump’s administration, is investigating whether DeepSeek acquired advanced Nvidia chips through third-party entities in Singapore to bypass Washington’s restrictions on AI-related semiconductor sales, according to Bloomberg News. While Nvidia has stated it does not believe DeepSeek violated export controls, Singapore has assured that its customs and law enforcement agencies will continue collaborating with U.S. authorities on the matter.

DeepSeek, based in Hangzhou, recently launched an AI chatbot, R1, which has demonstrated capabilities comparable to leading U.S. models. This has fueled speculation that China may be more advanced in AI development than previously thought. Industry experts have praised R1’s performance, while some competitors have questioned whether it was built using Western technology, given its cost efficiency.

Tan reiterated that Singapore’s customs department actively cooperates with foreign counterparts, including the U.S., in investigations where necessary. He emphasized that Singapore does not support businesses using the country as a means to circumvent export restrictions imposed by other nations.