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China's DeepSeek AI Banned By US Commerce On Govt Devices: Here's Why

DeepSeek, the low-cost AI model, sent shockwaves through global equity markets in January amid concerns about its potential impact on the US technology sector.

The US Commerce Department has barred employees from using the Chinese artificial intelligence model DeepSeek on government-furnished devices, according to an internal message seen by Reuters and confirmed by multiple sources. The directive warns staff against downloading, viewing, or accessing any applications or websites linked to DeepSeek, emphasizing cybersecurity concerns.

“To help keep Department of Commerce information systems safe, access to the new Chinese-based AI DeepSeek is broadly prohibited on all GFE,” an internal email stated, referring to government-furnished equipment. Employees have been instructed to avoid any engagement with the AI tool to mitigate potential security risks.

The US Commerce Department has yet to issue an official statement regarding the ban, and it remains unclear whether similar restrictions have been implemented across other federal agencies.

Growing National Security Concerns

DeepSeek, a low-cost AI model, sent shockwaves through global equity markets in January amid concerns about its potential impact on the US technology sector. Lawmakers and security officials have raised alarms about its data privacy risks, citing fears that sensitive government information could be compromised.

In response, Representatives Josh Gottheimer and Darin LaHood, members of the House Permanent Select Committee on Intelligence, introduced legislation in February seeking to ban DeepSeek from all government devices. Earlier this month, they urged state governors to enact similar restrictions, warning of the potential consequences of allowing the AI tool access to government networks.

“By using DeepSeek, users are unknowingly sharing highly sensitive, proprietary information with the CCP — such as contracts, documents, and financial records,” the lawmakers cautioned in a letter dated March 3. “In the wrong hands, this data is an enormous asset to the CCP, a known foreign adversary.”

State-Level Crackdowns Gain Momentum

Several states, including Virginia, Texas, and New York, have already banned DeepSeek from government-issued devices. Additionally, a coalition of 21 state attorneys general has urged Congress to pass nationwide legislation to prevent the use of the AI model on federal and state government systems.

The US government’s efforts to curb Chinese AI influence reflect broader tensions between Washington and Beijing over technological advancements and data security. As scrutiny of foreign AI tools intensifies, further restrictions on DeepSeek and similar platforms could be forthcoming.

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