Chinese AI (artificial intelligence) start-up DeepSeek’s threat became real, as the U.S. Commerce Department banned the app’s usage on all GFEs (Government-Furnished Equipment). The news was first reported by Reuters, citing an internal email and sources familiar with the matter. The Commerce Department informed the staff that the ban was meant to protect its information systems. Staff is strictly instructed not to “download, view, access any applications, desktop apps or websites related to DeepSeek.”
Here’s Why the U.S. Department Is Banning DeepSeek
U.S. lawmakers and officials are deeply concerned about the growing use of the Chinese app and the related national security risks. DeepSeek has mentioned earlier that all user data is stored on a cloud server in China, but there is no clarity on who can access the data and how it is being used. Officials worry that using the app could possibly leak sensitive government data and private information to the CCP (Chinese Communist Party). The extent of the app’s ban within other U.S. agencies remains unknown.
Rumors of DeepSeek’s ban across government departments have been doing the rounds since early March. Notably, several U.S. states, including New York, Texas, and Virginia have already restricted the use of DeepSeek’s AI model. Meanwhile, a coalition of 21 state attorneys general has urged for a nationwide ban on the app.
DeepSeek’s Launch Triggers Global Concerns
The launch of DeepSeek’s low-cost R1 AI models in January triggered global concerns, particularly in the U.S. Tech stocks, including Nvidia (NVDA), which witnessed a major sell-off as investors fretted about the U.S.’ dominance in the AI space. Remarkably, other countries such as Taiwan have also banned DeepSeek AI, while South Korea and Italy have halted new downloads of the app owing to privacy concerns.
Interestingly, Chinese officials are also worried about the potential spread of trade secrets outside the country. According to a report by The Information, DeepSeek’s engineers and some key employees have handed over their passports to the company and have been subject to a travel ban to prevent any intentional or unintended leaks of confidential information.
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