The rapid expansion of artificial intelligence (AI) has prompted concerns about data security, privacy, and geopolitical influence. One of the latest flashpoints in this ongoing debate is DeepSeek, a Chinese AI startup that has gained significant traction in recent months. Despite its meteoric rise, several countries—including South Korea, Australia, the United States, Italy, and Taiwan—have banned its use for government employees, citing security risks. Others, such as the United States, are also considering a broader prohibition. This article explores the reasons behind these bans, the implications of DeepSeek’s rapid growth, and the broader context of AI regulation in an era of technological competition.

DeepSeek, based in Hangzhou, China, was founded in 2023 by entrepreneur Liang Feng. The company released its latest AI chatbot, DeepSeek R1, in January 2024, quickly positioning itself as a rival to OpenAI’s ChatGPT. The chatbot, designed for a variety of tasks, including coding, text generation, and mathematical problem-solving, drew attention not only for its capabilities but also for its low development cost.

According to a research paper published by DeepSeek, its model was trained using less than $6 million worth of computing power, a fraction of the cost incurred by US-based AI giants like OpenAI and Google. This claim rattled global markets, leading to a significant drop in the stock prices of tech companies heavily invested in AI. Nvidia, a key player in AI hardware, suffered a $600 billion decline in market capitalization following DeepSeek’s announcement.

Countries Banning DeepSeek

1. United States

The US government has raised alarms about DeepSeek’s potential security threats. According to The Wall Street Journal, lawmakers are considering legislation that would block DeepSeek from government-owned devices.

The concerns stem from the possibility that DeepSeek collects sensitive user data and could share it with the Chinese government. Already, NASA has banned its employees from using DeepSeek, while the US Navy has warned service members of potential security and ethical risks. Given the growing tensions between the US and China over technological dominance, it is likely that the US will further tighten restrictions on Chinese AI technologies.

2. South Korea

South Korea has also taken preemptive measures against DeepSeek. The country’s Ministry of Trade, Industry, and Energy announced a temporary ban on the chatbot for government employees, citing security concerns. Seoul’s Personal Information Protection Commission has launched an inquiry into how DeepSeek handles user data.

Additionally, Korea Hydro & Nuclear Power, a state-run energy provider, has blocked the use of AI services, including DeepSeek, on employees’ devices. The move signals a broader caution in South Korea over foreign AI applications, particularly those originating from China.

3. Australia

Australia’s Department of Home Affairs has mandated a ban on DeepSeek across all government agencies. The ban, announced in a government statement, directs agencies to “prevent the use or installation of DeepSeek products, applications, and web services and remove all existing instances of DeepSeek products.”

Home Affairs Minister Clare O’Neil justified the move by stating that it was necessary to protect national security and Australia’s national interest. With increasing cyber threats and digital espionage concerns, Australia is aligning itself with other Western nations in limiting Chinese technology’s reach within government operations.

4. Italy

Italy’s Data Protection Authority (Garante) has restricted DeepSeek’s ability to process Italian users’ data due to insufficient transparency regarding data collection and processing practices. The watchdog has requested further information from DeepSeek on its privacy policies and data handling mechanisms. The move follows Italy’s temporary ban on ChatGPT in 2023 over similar concerns related to GDPR (General Data Protection Regulation) compliance.

5. Taiwan

Taiwan has also moved swiftly to ban DeepSeek from government use, citing national security risks. Given the island’s tense geopolitical relationship with China, the Taiwanese government remains highly cautious about potential cybersecurity threats from Chinese-origin technologies. The restrictions underscore Taiwan’s broader strategy of shielding its critical infrastructure from potential foreign interference.

The common factor among these bans is concern over DeepSeek’s data collection and potential links to the Chinese government. According to its privacy policy, DeepSeek collects personal data, including email addresses, phone numbers, passwords, chat history, and device information. Critics argue that the platform’s policies do not provide enough clarity on how this information is stored, shared, or used.

A report by Feroot Security, a Canadian cybersecurity firm, claims that DeepSeek’s software contains code that could send user data to China Mobile, a state-owned telecom provider. Although DeepSeek has denied these allegations, concerns remain over how data could be accessed or exploited under China’s National Intelligence Law, which compels companies to cooperate with state authorities when requested.

While concerns over data privacy are legitimate, critics argue that the scrutiny faced by DeepSeek is disproportionate compared to Western AI firms. For example, OpenAI’s ChatGPT and Google’s Gemini also collect user data for training and operational purposes. However, because these companies operate under US and EU regulations, they are seen as “fixable through regulation” rather than outright threats, according to AI expert Eddy Borges-Rey.

This discrepancy highlights the broader issue of AI governance. Western nations have historically scrutinized Chinese technology more heavily than their own, often justifying bans based on national security considerations. However, China employs similar tactics, banning Western platforms such as Facebook, X (formerly Twitter), and ChatGPT.

The case of DeepSeek underscores the need for clear, internationally recognized AI regulations. As AI technology continues to advance, governments will have to balance national security concerns with the need for innovation and competition.

Some experts argue that instead of outright bans, regulatory frameworks that ensure transparency and data protection could offer a middle ground. This would include independent audits of AI systems, strict data storage policies, and international collaboration on security standards.

The bans on DeepSeek by multiple countries reflect ongoing concerns about data security, foreign influence, and the regulation of AI technologies. While these actions highlight legitimate risks, they also raise questions about whether AI governance is being applied equitably across global technology firms. The DeepSeek case is not just about one AI chatbot—it is emblematic of the broader tensions shaping the future of AI, cybersecurity, and international digital competition. As more governments evaluate their AI policies, the coming years will likely see more debates, regulations, and geopolitical maneuvering over emerging AI technologies.