Washington: The Trump administration is weighing penalties that will prevent China’s deepest purchase of American technology and debate the opportunity to ban Americans from accessing their services, The New York Times Report Wednesday.

The launch of China’s low-cost AI model DeepSeek shocked the AI ​​ecosystem. Since then, the U.S. government has taken steps to combat support from Chinese startups and their chip maker Nvidia.

NVIDIA’s AI chips have been the focus of U.S. export controls, as U.S. officials aim to prevent state-of-the-art chips from being sold to China in order to maintain the lead in the AI ​​competition.

Trump’s Trump administration this week restricted NVIDIA from selling AI chips to China.

“It has sent an official letter to NVIDIA asking for answers about sales to China and Southeast Asia to check if and how its chips ultimately power DeepSeek’s AI model despite U.S. export restrictions,” the U.S. House Selection Committee said in a report.

NVIDIA warned on Tuesday that Washington restricted its H20 AI chip exports to a $5.5 billion blow after China. The move to limit H20 shipments is Trump’s latest effort to limit China’s high-end semiconductors.

Since 2022, the United States has banned NVIDIA’s most advanced bargaining chip exports, fearing that China can use advanced technology to build its military capabilities.

DeepSeek, White House and Commerce Department did not respond immediately Reuters‘Request for comment.