The Australian government is sounding the alarm over the rising popularity of the DeepSeek AI application, urging citizens to exercise caution before downloading the chatbot developed by its Chinese creators. The app, noted for its impressive capabilities at significantly lower costs compared to its Western counterparts like ChatGPT, is stirring up concerns around data privacy and security.
On January 28, Minister for Industry and Science Ed Husic publicly expressed concern about DeepSeek, highlighting the necessity for thorough consideration before users opt to use the application. Speaking to ABC News, Husic remarked, "I think people will be drawn to this technology, but they need to be extremely cautious." His warning reflects a broader unease felt by officials and technology experts across the West, echoing similar debates previously held about social media giant TikTok.
DeepSeek introduced its latest language model, DeepSeek-R1, on January 20. This model operates on open-source platforms, allowing users to run it directly on personal hardware without restrictions. Comparatively, ChatGPT requires users to pay up to $200 per month for premium services and functions on closed-source systems. The allure of DeepSeek lies not only within its affordable pricing but also its effective performance, which has drawn significant attention globally, resulting in stock market reactions.
Husic's remarks come after reports surfaced about DeepSeek's potential to disrupt the tech market, initially causing shocks on Wall Street and leading to approximately $1 trillion being wiped off the value of major American tech companies on January 27. "There are many questions to be answered timely about quality, consumer preferences, data management, and privacy," Husic stated, emphasizing the importance of cautious engagement with such innovations.
With governments increasingly vigilant about foreign technologies, the Minister voiced skepticism about how Chinese companies handle consumer data, which he suggests differs from Western expectations. He mentioned, "The Chinese are very good at developing products which function very well. Their market is standardized around their own data and privacy approach. But when you export those products to markets where consumers have different expectations, the question is whether those products will be accepted the same way."
Reflecting on the possible consequences of DeepSeek's ascendance, Husic speculated on the likelihood of public debates mirroring those surrounding TikTok. He noted, "I wouldn’t be surprised if such discussions arise… I do not have TikTok on my government phone. I think these issues need careful consideration," offering insight rooted in the controversies faced by technology firms from China.
Notably, Australia previously barred Chinese telecommunications giant Huawei from contributing to the rollout of its 5G network on national security grounds. DeepSeek-R1 recently managed to outpace ChatGPT on the App Store’s list of most downloaded free applications within the U.S., showcasing its rapid growth. That surge, though, hadn't come without repercussions, as NVIDIA's stock, the company responsible for producing AI chips, saw a steep decline of 17% following the announcements surrounding DeepSeek R1's capabilities.
The discourse surrounding the emergence of applications like DeepSeek isn't limited to Australia. Former U.S. President Donald Trump weighed in, describing the app's emergence as a wake-up call for American tech firms, insisting they must innovate to keep pace with Chinese offerings. Trump stated, "China producing AI solutions faster and at significantly lower costs is encouraging," and asserted the U.S. must find similar pathways to success.
Despite its potential upsides, the development of DeepSeek signals underlying risks for users and the broader tech ecosystem. The Australian government’s proactive stance serves as not only advice for would-be users but also as cautionary guidance for those operating within the technology space globally. The increasing pace of AI advancement raises significant questions about competitiveness and the balance of power faced by Western companies.
For now, as the popularity of DeepSeek continues to grow, both citizens and officials alike must stay vigilant, reevaluated their relationship with technology, and weigh the alluring offers tech innovations present against potential privacy risks and data management challenges.