Nvidia denies DeepSeek smuggled Blackwell chips amid export control scrutiny.

• China's AI startup DeepSeek is accused of using banned Nvidia Blackwell AI chips, raising concerns about export controls.
• Nvidia denies allegations of a clandestine smuggling operation, stating no evidence of "phantom datacentres" funneling chips into China.
• The controversy highlights intense scrutiny on global AI supply chains and the effectiveness of US export restrictions.
• Nvidia is developing new location-verification technology to help monitor GPU fleets and prevent advanced chips from being diverted.
• The dispute underscores the challenges of enforcing export controls and the tension between national AI ambitions and reliance on foreign silicon.

Why It Matters: It reveals weaknesses in global AI chip export control and supply chain security.