Global concerns over DeepSeek: nations restrict use citing security risks

In a growing wave of caution, several nations, including India, have placed restrictions on the usage of China's new AI tool, DeepSeek, citing security concerns. In response, China has criticized these moves as geopolitical maneuvers and pledged to defend its companies' rights.

During a recent media briefing, Guo Jiakun, the spokesperson for the Chinese Foreign Ministry, highlighted China's opposition to what it views as an undue expansion of national security concepts to influence trade and technology matters. Guo refuted allegations related to China's 2017 national intelligence law, emphasizing that Beijing does not compel companies to collect or mishandle data. "We have never asked and will never ask any company or individual to collect or store data against laws," he asserted.

Among the countries implementing restrictions, India has taken a notable stance. The Indian Finance Ministry has instructed its officials to refrain from using AI-related tools such as ChatGPT and DeepSeek on official devices, pointing to data confidentiality risks. A directive issued on January 29 underscored the ministry's concerns regarding the potential exposure of sensitive government information through these tools.

Globally, governments such as those of South Korea, Italy, Australia, the US, and Japan have similarly limited access to DeepSeek, wary of its implications.

DeepSeek has garnered significant attention internationally due to its low-cost model, priced at just USD 6 million, starkly contrasting with the billion-dollar budgets typical in the AI field. The R1 model of DeepSeek utilizes substantially less computing power compared to established AI models like ChatGPT, marking a paradigm shift.

Notably, DeepSeek has eclipsed ChatGPT to become the most downloaded free app on Apple's Appstore, leaving the US tech industry, known for its heavy investment in AI, in surprise.

As this situation develops, the trade and tech landscape continues to be shaped by national policies and geopolitical tensions surrounding emerging technologies.