Is DeepSeek lying? CEO of Scale AI Alexandr Wang says the Chinese startup is using 50,000 Nvidia H100 chips but workers can’t talk about it

The CEO of Scale AI, Alexandr Wang, has cast doubt on DeepSeek’s claims that it developed its AI models with limited resources. Wang alleged that the Chinese startup is secretly using 50,000 Nvidia H100 GPUs, a revelation that—if true—could undermine US efforts to restrict China’s access to advanced AI chips.

In a social media post, Wang questioned DeepSeek’s public narrative, stating that employees at the company are not allowed to discuss their hardware usage. The Nvidia H100 is the most powerful AI accelerator available today, making its alleged use by DeepSeek significant given the US export bans on cutting-edge chips to China.

Why This Matters

DeepSeek has shaken Wall Street and Silicon Valley in recent weeks, launching an AI model that rivals OpenAI’s GPT-4 but at a fraction of the cost. The company’s rise sent tech stocks plunging as investors worried that China may have closed the AI gap faster than expected.

DeepSeek previously claimed that its R1 AI model was built with far fewer computational resources than its American counterparts. However, Wang’s comments suggest DeepSeek may have downplayed the scale of its infrastructure to conceal its access to high-end Nvidia chips.

If true, this would mean:

  • China may still have access to restricted US chip technology, despite the Biden and Trump administrations’ efforts to limit AI hardware exports.
  • DeepSeek’s AI breakthroughs might not be as cost-efficient as claimed, raising concerns about transparency in China’s AI sector.
  • Washington may need to tighten AI chip restrictions even further to prevent Nvidia’s products from fueling Chinese AI advancements.

What’s Next?

DeepSeek has not publicly responded to the allegations. If proven accurate, these revelations could prompt further scrutiny from US regulators, potentially leading to harsher restrictions on Nvidia and other semiconductor companies.

For now, questions remain over how DeepSeek acquired such a massive number of Nvidia H100 GPUs—and whether the US AI industry underestimated China’s AI capabilities.

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