US Investigates Whether Deepseek Obtained NVidia Chips Through Singapore to Bypass Restrictions
Arthur T Knackerbracket has processed the following story:
Singapore's Second Minister for Trade and Industry, Tan See Leng, addressed the issue in a statement to lawmakers. According to Tan, while Nvidia reported that 22 percent of its sales in the August-October 2023 period were attributed to Singapore, this figure primarily reflects billing practices rather than physical product delivery.
Tan emphasized that the actual physical delivery of Nvidia products to Singapore represents less than one percent of Nvidia's overall revenue for the three-month period ending in October 2023. These deliveries were primarily for major enterprises and government use within Singapore.
The discrepancy between billing attribution and physical delivery is not unique to Nvidia or Singapore. Tan explained that it is common practice for global entities to centralize billing for procured goods and services in their hubs, separate from where products are shipped. This strategy allows multinational companies operating across borders to streamline their financial operations, often billing everything through their headquarters address while shipping items directly to where they're needed.
Nvidia has long acknowledged this practice in its financial reporting, stating that revenue by geographic area is based on the billing location of the customer, which may differ from the end customer and shipping location.
Singapore's position in this matter is particularly sensitive due to its close ties with both China and the United States. The country has become a hub for many Chinese tech companies, including ByteDance's TikTok, which has its headquarters in Singapore.
[...] The investigation comes in the wake of DeepSeek's release of a chatbot called R1, which has demonstrated capabilities comparable to US-developed tools. This development has raised questions about China's progress in AI technology and whether this progress has relied on Western technology.
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