The Trump administration is reportedly considering new restrictions against Chinese artificial intelligence company DeepSeek, aiming to curb its access to American technology and consumers, The New York Times reported on Wednesday.

The potential measures include banning US sales of Nvidia’s advanced AI chips to DeepSeek and restricting American access to its AI services.

The move comes as tensions escalate in the ongoing US-China tech rivalry, with Washington increasingly wary of Beijing’s growing influence in AI.

The White House on Tuesday strengthened rules limiting Nvidia’s AI chip exports to China. Officials are particularly concerned about DeepSeek’s rapid rise and affordability, which has disrupted the market and drawn attention from AI developers and investors globally.

DeepSeek, which launched its open-source model DeepSeek-V3 for just $6 million in January, is suspected of using unlawfully obtained American intellectual property.

OpenAI has alleged the Chinese firm violated its terms of use by distilling its models.

A US congressional report also accuses DeepSeek of funneling American user data to the Chinese Communist Party and manipulating content to align with state narratives.

According to the report, DeepSeek may have acquired up to 60,000 Nvidia chips, including 20,000 covered by US export controls, raising concerns about unauthorized transfers. Singaporean authorities recently arrested three individuals for illegally exporting Nvidia chips, allegedly on behalf of DeepSeek.

Nvidia maintains it follows all US regulations and said it ships products according to legal instructions.

However, the US Select Committee on the Chinese Communist Party is demanding more transparency from Nvidia about its sales across Asia.

DeepSeek is also facing global scrutiny, with data regulators in Italy, France, South Korea, and Ireland investigating the company’s compliance with privacy laws.

The company has yet to publicly respond to the allegations.