Nvidia is facing scrutiny over potential illegal exports of its chips to China via Singapore. Recent arrests in Singapore highlight concerns about a smuggling network that misrepresents destination shipping.

DeepSeek, a Chinese AI startup, claims a theoretical daily cost-profit ratio of 545% for its V3 and R1 models, raising questions for U.S. AI firms due to its lower costs.

In Singapore, three individuals have been charged with fraud involving the alleged rerouting of high-end Nvidia chips to the AI firm DeepSeek. This case suggests deeper implications involving international AI regulations and supply chain issues.

Despite strong earnings, Nvidia's stock was downgraded by KinNgai Chan of Summit Insights Group due to concerns over the impact of Chinese startup DeepSeek on computing power needs for AI development.

In a recent interview, Nvidia CEO Jensen Huang stated that future AI models will require 100 times more computational power due to advanced reasoning processes. He highlighted Nvidia's significant earnings and addressed concerns regarding DeepSeek's performance capabilities, emphasizing the need for higher chip demands in reasoning models.