Key Highlights
- DeepSeek offers an affordable AI chatbot
- The AI’s security concerns have led to bans
- Multiple countries have restricted its use due to data privacy risks
DeepSeek has gained global attention for its capabilities and low-cost development. However, concerns over data security and privacy have led several governments, including the United States, South Korea, Australia, Italy, and Taiwan, to restrict or ban its use on government devices. Let’s take a closer look at what DeepSeek is and why it is facing restrictions worldwide.
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What Is DeepSeek?
DeepSeek is an AI-powered chatbot developed by a Chinese startup based in Hangzhou. Founded in 2023 by entrepreneur Liang Feng, the company has introduced advanced AI models like DeepSeek-V3 and DeepSeek-R1. These models use the Mixture-of-Experts (MoE) architecture which enhances efficiency while reducing costs. Unlike competitors like ChatGPT and Google Gemini, DeepSeek’s training costs are significantly lower, reportedly under $6 million, making it a game-changer in AI development.
Why Is DeepSeek Being Banned?
Several countries have raised concerns over DeepSeek’s security risks. This is particularly regarding data privacy and potential misuse of user information. Authorities are worried about how the chatbot handles personal data and whether it could be accessed by Chinese government agencies. As a result, multiple nations have taken action:
- United States: NASA and the US Navy have already restricted DeepSeek on employee devices. A proposed bill aims to ban the chatbot across all government-owned systems.
- South Korea: The government has temporarily restricted DeepSeek for its employees and is investigating its data policies.
- Australia: The Australian government has mandated a complete ban on DeepSeek across all official devices to protect national security.
- Italy: The Italian Data Protection Authority has ordered limitations on DeepSeek due to a lack of clarity on data management.
- Taiwan: The government has restricted the use of DeepSeek across departments, citing cybersecurity risks.
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Impact On The AI Industry
DeepSeek’s emergence has caused disruptions in the AI industry. After its launch, Nvidia’s stock price dropped by 17 percent, wiping out nearly $600 billion in market value. This highlights the competitive threat posed by DeepSeek’s cost-effective AI solutions. However, security concerns remain a significant hurdle for its global adoption.
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