Australia becomes first nation to ban DeepSeek over security risks

The Australian government has officially banned DeepSeek, a Chinese artificial intelligence (AI) startup, from all government devices and systems, citing national security risks. The move follows growing global concerns about the company’s data handling practices and the broader implications of Chinese technology in sensitive areas.

DeepSeek made headlines in January when it launched a chatbot that rivaled US-developed AI models while boasting significantly lower training costs. The breakthrough sent shockwaves across global stock markets, with AI-related stocks—including Australia’s chipmaker Brainchip—experiencing sharp declines overnight.

Despite DeepSeek’s technological success, concerns over its security risks quickly mounted. The Australian government has stated that the decision to ban DeepSeek is based solely on the risks it poses to national security rather than its Chinese origins. The directive requires all government entities to prevent the use or installation of DeepSeek applications, web services, and products on official devices and remove any previously installed versions. This affects a wide range of departments, including the Australian Electoral Commission and the Bureau of Meteorology, though it remains unclear whether schools or other public sector institutions will also be impacted.

Notably, the ban does not extend to private citizens, meaning individuals can still use DeepSeek on their personal devices.

Australia's move aligns with a broader trend among Western nations scrutinizing Chinese technology over security and privacy concerns. Companies like Huawei and TikTok have faced restrictions in various countries, with governments citing fears of potential data exposure to Chinese authorities.

While initial reactions to DeepSeek were more neutral—former US President Donald Trump even called it a “wake-up call” for American AI firms—global skepticism has since intensified. The chatbot was temporarily removed from app stores in Italy following privacy policy concerns, and regulatory bodies in South Korea, Ireland, and France have launched investigations into its data practices. Reports suggest that the US Navy has also quietly banned DeepSeek on its networks, adding to the growing list of institutions distancing themselves from the tool.

One of the biggest concerns surrounding DeepSeek is how it manages user data. Like other AI tools such as OpenAI’s ChatGPT and Google Gemini, DeepSeek collects and processes user input to improve its model. This includes storing personal details such as email addresses and dates of birth.

However, security experts warn that the data collected by DeepSeek is stored in China, raising fears about potential access by Chinese authorities. Given the sensitive nature of government work, Australian officials are unwilling to take risks with a tool that could expose confidential information.

DeepSeek has yet to issue a public response to Australia’s decision, though the company has previously denied allegations of data misuse or unfairly leveraging US-developed technology. Meanwhile, OpenAI has voiced concerns about competitors—including Chinese firms—allegedly using its models to accelerate their own AI advancements.

The Australian ban signals a growing willingness among governments to preemptively restrict foreign technology they deem risky, especially in AI. Cybersecurity analysts suggest that as AI tools become more integrated into government operations, similar restrictions could become the norm.

For now, DeepSeek’s fate in other global markets remains uncertain. With multiple investigations underway and increasing scrutiny from Western regulators, the company may face further challenges in expanding its reach outside China.