US and Australian officials warn against using China’s DeepSeek AI, citing national security threats; the US Navy has banned its personnel from using the chatbot.
DeepSeek, a chatbot developed by a Hangzhou-based startup, has rapidly emerged as a formidable competitor in the AI industry, long dominated by Western tech giants. Launched last month, the AI tool has captured global attention due to its remarkable cost efficiency. Unlike companies such as OpenAI, Google, and Meta, which have invested billions in AI, DeepSeek was developed with just $6 million.
DeepSeek: Rapid global adoption
Despite its limited budget, DeepSeek has demonstrated performance on par with leading AI models. Within weeks of its launch, it became the most downloaded app on Apple’s US App Store, surpassing ChatGPT in key markets such as the UK, Canada, and Singapore. One of its biggest advantages is affordability — users can access a paid subscription for just $0.50 per month, compared to ChatGPT’s $20 starting price.
DeepSeek news: Market impact
The emergence of DeepSeek has had a significant impact on global financial markets. The AI and semiconductor sectors have seen substantial declines, with major companies experiencing sharp losses. Nvidia, a leading US chip manufacturer, saw its market value plunge by nearly $600 billion in a single day, marking the largest one-day drop for any company in US history.
US response: ‘A national security concern’
US President Donald Trump described China’s AI progress as a “wake-up call” for American industries. In response, his administration has announced a $500 billion investment in “Stargate,” an initiative aimed at bolstering AI infrastructure and innovation in the US.
Concerns over national security have also intensified. Lawmakers and cybersecurity experts warn that China’s AI advancements could pose risks to the US. White House Press Secretary Karoline Leavitt said the National Security Council would assess the security implications of DeepSeek’s launch, emphasising the administration’s commitment to maintaining American AI leadership, according to CBS News.
Rep. John Moolenaar, who leads the bipartisan House Select Committee on the Chinese Communist Party, stressed the need for stricter export controls on technology that supports DeepSeek’s infrastructure, citing risks to US security.
US Navy bans use of China’s DeepSeek AI
The US Navy has directed its personnel to refrain from using DeepSeek, citing security and ethical risks, according to a report by CNBC.
In an internal email sent on Friday, Navy officials warned service members not to use DeepSeek “in any capacity” due to concerns regarding its origins and potential misuse. The directive, addressed to “shipmates,” emphasised the risks associated with the AI model.
A spokesperson for the US Navy verified the authenticity of the email, clarifying that the directive aligns with the Department of the Navy’s Chief Information Officer’s policy on generative AI. The move underscores growing concerns about foreign AI technologies and their implications for national security.
Experts urge caution in using DeepSeek
Academics and government officials worldwide have expressed caution regarding DeepSeek. Michael Wooldridge, an AI professor at the University of Oxford, advised users against entering sensitive data into the chatbot. “I think it’s fine to download it and ask about the performance of Liverpool football club or chat about the history of the Roman empire,” he told The Guardian, raising concerns about data security. “But would I recommend putting anything sensitive, personal, or private on them? Absolutely not… Because you don’t know where the data goes.”
UK Technology Secretary Peter Kyle also highlighted DeepSeek’s built-in censorship, noting that the model operates under different regulations compared to Western AI tools. “I think people need to make their own choices about this right now because we haven’t had time to fully understand it,” he said on The News Agents podcast.
Similarly, Australian Treasurer Jim Chalmers urged citizens to exercise caution when using DeepSeek, confirming that the government is actively monitoring the technology.
The future of AI competition
DeepSeek’s rise signals a major shift in the AI landscape, challenging Western tech giants and prompting geopolitical responses. As China continues to advance in AI innovation, global markets and governments will closely watch how this development reshapes the industry.
Source: Business Standard