The Trump administration is weighing new penalties that could prevent Chinese tech company DeepSeek from acquiring American technology and may bar United States citizens from using its services, according to a report by The New York Times on Wednesday.

In a broader move to curb China’s access to advanced artificial intelligence tools, the administration also tightened restrictions this week on the sale of AI chips by U.S. tech giant Nvidia. The company has been a key supplier of high-performance processors used in AI development.

The House Select Committee on the Chinese Communist Party has launched an investigation into Nvidia’s sale of chips across Asia. Lawmakers are reportedly examining whether Nvidia knowingly supplied DeepSeek with sensitive technology that could be used to develop AI systems—potentially breaching U.S. export control laws.

The developments come as Nvidia warned on Tuesday that it faces a potential $5.5 billion revenue loss due to Washington’s new export restrictions on its China-specific AI processors.