The artificial intelligence (AI) market is becoming increasingly competitive, especially with the emergence of China's ultra-affordable DeepSeek chatbot. Having emerged as a potential contender to previously popular AI chatbots like ChatGPT and Gemini, DeepSeek is facing numerous challenges as it attempts to expand onto the international stage.
Headquartered in China, DeepSeek is struggling to establish its presence outside its home country due to national security concerns and data privacy issues. Taiwan recently became the latest nation to issue a ban on the use of DeepSeek within its government agencies and other infrastructures. The Taiwanese Ministry of Digital Affairs announced this ban last Friday, citing fears of data leakage and cross-border data transfer.
This move by Taiwan follows Italy's nationwide ban on DeepSeek, where the Italian Data Protection Authority, Garante, blocked the application due to privacy and data security concerns. Other European countries, including Germany, are also investigating DeepSeek as reports indicate the application collects extensive personal information, including IP addresses, chat logs, and keystroke activity.
Meanwhile, the United States has also taken precautions, with the Pentagon restricting the use of DeepSeek on certain sections of its military network, and the U.S. Navy prohibiting its personnel from using the application entirely. U.S. officials are evaluating next steps to mitigate security risks associated with the application.
The turmoil surrounding DeepSeek highlights the growing unease within governments worldwide concerning the risks posed by AI developed in China. Experts have raised alarms about the pervasive data gathering capabilities of DeepSeek, which reportedly can collect personal information at 20 times the rate of Google, according to Dewardric McNeal, CEO and senior policy analyst at Longview Global.
DeepSeek's rise to prominence and the scrutiny it has attracted, particularly concerning its data handling, are reflective of broader tensions between the U.S. and China. With rising concerns over data privacy and national security, more nations may soon impose similar restrictions on DeepSeek.
Notably, Garante has demanded official explanations from DeepSeek about how it processes users' personal data, emphasizing the urgency of compliance within 20 days. Failure to respond adequately may lead to penalties or expanded bans across the European Union (EU).
Following Garante's announcement, DeepSeek was swiftly removed from both Apple and Google app stores in Italy. Reports on the specific reasons behind this action remain unclear, but the immediate impact is evident: users in Italy can no longer access the application via official distribution platforms.
Not solely limited to Europe, the U.S. government is also evaluating the potential impacts of DeepSeek on national security. Although it hasn’t been removed from the U.S. app stores, experts and officials express concern over the application's extensive data collection capabilities.
While the immediate future of DeepSeek appears uncertain, its appeal lies not only in its capabilities but also its open-source status, which enables developers to modify and improve upon its architecture. This aspect has contributed to rising interest, even as security and privacy concerns loom large.
DeepSeek has nevertheless encountered backlash from cybersecurity experts alleging insufficient content control mechanisms, thereby facilitating malicious uses of the AI platform. Cybercrime researchers warned of the potential for DeepSeek to be exploited to create phishing emails or analyze stolen datasets.
Most alarmingly, on January 31, 2025, Texas Governor Greg Abbott prohibited DeepSeek's use on all state-issued devices, alongside banning other popular Chinese social media platforms. The U.S. Navy reaffirmed similar restrictions, declaring DeepSeek's technology unacceptable for any capacity because of inherent security and ethical concerns.
Globally, various regulatory bodies are monitoring DeepSeek's data handling practices closely. The UK’s Technology Minister Peter Kyle announced evaluations of DeepSeek for safety assurance, and concerns about compliance with the General Data Protection Regulation (GDPR) are widespread among EU regulators.
Despite the controversy and scrutiny, DeepSeek's fundamental structure and development strategies continue to captivate users worldwide. While restrictions grow tighter, the application remains competitively positioned within AI markets due to its favorable cost structure and innovative design.
Nevertheless, DeepSeek faces significant challenges from data privacy watchdogs and multiple national governments. The risks associated with data collection, potential violations of privacy laws, and governmental restrictions cast uncertainty on its international prospects. Future responses to inquiries from Garante and investigations from both the U.S. and EU will play decisive roles in shaping the application's fate going forward.