Chinese artificial intelligence (AI) DeepSeek has been banned in another country with Australia no longer allowing the app on government devices. This requires all government computers, smartphones, and tablets to be DeepSeek-free to avoid potential security risks.
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It’s worth noting this doesn’t affect private citizens, who can still download and use the AI model. It’s interesting as Australia joined Italy with its partial ban of DeepSeek over security concerns. Italy’s ban went further with regulators not allowing its use by government employees or private citizens.
Australia and Italy aren’t the only countries that have banned DeepSeek. Taiwan also banned government employees from using the software earlier this week. Yet again, security is the chief concern of these countries.
Will More DeepSeek Bans Follow?
Many countries are reportedly considering bans on China’s DeepSeek AI. That includes countries in Europe that are currently investigating the AI app as they weigh potential bans.
The U.S. is taking extreme measures as well with a new bill from Republican Senator Josh Hawley. This bill seeks to punish U.S. citizens who advance “artificial intelligence capabilities within the People’s Republic of China.” This could apply to DeepSeek use as the AI model improves the more it interacts with users.
What Does This Mean for AI Stocks?
A DeepSeek ban in the U.S. could be a boon to local AI stocks. Those suffered when the model was revealed as its performance was comparable to OpenAI’s ChatGPT. This worried some investors about progress on U.S. AI development, sending AI shares falling last week.
Since then, AI stocks have started to recover and could see more gains if DeepSeek is banned in the U.S. Traders that want to get in before that might consider stakes in OpenAI backer Microsoft (MSFT), graphics card maker Nvidia (NVDA), or social media giant Meta Platforms (META). Investors can compare those and other AI stocks below.
