According to a recent report by The New York Times, the Trump administration is contemplating imposing new restrictions on the Chinese AI laboratory DeepSeek, which could limit its ability to purchase Nvidia’s AI chips and potentially restrict American access to its AI services.

These potential restrictions are part of the Trump administration’s broader strategy to compete with China in the field of artificial intelligence. Following DeepSeek’s significant impact on both Silicon Valley and Wall Street, U.S. officials are reportedly considering several options to limit China’s access to American technology and consumers.

In a recent move, the White House announced on Tuesday that it would be imposing stricter restrictions on the sale of Nvidia’s AI chips to China, building upon rules initially established by the Biden administration.

DeepSeek’s popularity among AI developers in the United States has experienced a significant surge in recent months, with the startup’s competitive pricing forcing Silicon Valley to offer cutting-edge AI models at lower costs.

However, concerns have been raised regarding whether DeepSeek engaged in intellectual property theft to develop some of its more competitive models. OpenAI has alleged that the Chinese laboratory distilled its models, violating OpenAI’s terms of use, as reported by The New York Times.