DeepSeek, practically unknown just weeks ago, took the tech world by storm—gaining global acclaim for its cutting-edge performance while sparking debates reminiscent of the TikTok saga.

Its rise has been fuelled in part by its business model: unlike many of its American counterparts, including OpenAI and Google, DeepSeek offered its advanced powers for free.

However, concerns have been raised about DeepSeek’s extensive data collection practices and a probe has been launched by Microsoft and OpenAI over a breach of the latter’s system by a group allegedly linked to the Chinese AI startup.

A threat to US AI dominance

DeepSeek’s astonishing capabilities have, within a matter of weeks, positioned it as a major competitor to American AI stalwarts like OpenAI’s ChatGPT and Google Gemini. But, alongside the app’s prowess, concerns have emerged over alleged ties to the Chinese Communist Party (CCP).  

According to security researchers, hidden code within DeepSeek’s AI has been found transmitting user data to China Mobile—a state-owned telecoms company banned in the US. DeepSeek’s own privacy policy permits the collection of data such as IP addresses, device information, and, most alarmingly, even keystroke patterns.

Such findings have led to bipartisan efforts in the US Congress to curtail DeepSeek’s influence, with lawmakers scrambling to protect sensitive data from potential CCP oversight.

Reps. Darin LaHood (R-IL) and Josh Gottheimer (D-NJ) are spearheading efforts to introduce legislation that would prohibit DeepSeek from being installed on all government-issued devices. 

Several federal agencies, among them NASA and the US Navy, have already preemptively issued a ban on DeepSeek. Similarly, the state of Texas has also introduced restrictions.

Potential ban of DeepSeek a TikTok redux?

The controversy surrounding DeepSeek bears similarities to debates over TikTok, the social video app owned by Chinese company ByteDance. TikTok remains under fire over accusations that user data is accessible to the CCP, though definitive proof has yet to materialise.

In contrast, DeepSeek’s case involves clear evidence, as revealed by cybersecurity investigators who identified the app’s unauthorised data transmissions. While some might say DeepSeek echoes the TikTok controversy, security experts argue that it represents a much starker and documented threat.

Lawmakers around the world are taking note. In addition to the US proposals, DeepSeek has already faced bans from government systems in countries including Australia, South Korea, and Italy.  

AI becomes a geopolitical battleground

The concerns over DeepSeek exemplify how AI has now become a geopolitical flashpoint between global superpowers—especially between the US and China.

American AI firms like OpenAI have enjoyed a dominant position in recent years, but Chinese companies have poured resources into catching up and, in some cases, surpassing their US competitors.  

DeepSeek’s lightning-quick growth has unsettled that balance, not only because of its AI models but also due to its pricing strategy, which undercuts competitors by offering the app free of charge. That begs the question of whether it’s truly “free” or if the cost is paid in lost privacy and security.

China Mobile’s involvement raises further eyebrows, given the state-owned telecom company’s prior sanctions and prohibition from the US market. Critics worry that data collected through platforms like DeepSeek could fill gaps in Chinese surveillance activities or even potential economic manipulations.

A nationwide DeepSeek ban is on the cards

If the proposed US legislation is passed, it could represent the first step toward nationwide restrictions or an outright ban on DeepSeek. Geopolitical tension between China and the West continues to shape policies in advanced technologies, and AI appears to be the latest arena for this ongoing chess match.  

In the meantime, calls to regulate applications like DeepSeek are likely to grow louder. Conversations about data privacy, national security, and ethical boundaries in AI development are becoming ever more urgent as individuals and organisations across the globe navigate the promises and pitfalls of next-generation tools.  

DeepSeek’s rise may have, indeed, rattled the AI hierarchy, but whether it can maintain its momentum in the face of increasing global pushback remains to be seen.

(Photo by Solen Feyissa)

See also: AVAXAI brings DeepSeek to Web3 with decentralised AI agents

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The Guarantor for the Protection of Personal Data (GPDP) announced last month that it was blocking access to OpenAI’s ChatGPT. The move was part of an ongoing investigation into whether the chatbot violated Italy’s data privacy laws and the EU’s infamous General Data Protection Regulation (GDPR).

The GPDP was concerned that ChatGPT could recall and emit personal information, such as phone numbers and addresses, from input queries. Additionally, officials were worried that the chatbot could expose minors to inappropriate answers that could potentially be harmful.

The GPDP says it will lift the ban on ChatGPT if its creator, OpenAI, enforces rules protecting minors and users’ personal data by 30th April 2023.

OpenAI has been asked to notify people on its website how ChatGPT stores and processes their data and require users to confirm that they are 18 and older before using the software.

An age verification process will be required when registering new users and children below the age of 13 must be prevented from accessing the software. People aged 13-18 must obtain consent from their parents to use ChatGPT.

The company must also ask for explicit consent to use people’s data to train its AI models and allow anyone – whether they’re a user or not – to request any false personal information generated by ChatGPT to be corrected or deleted altogether.

All of these changes must be implemented by September 30th or the ban will be reinstated.

This move is part of a larger trend of increased scrutiny of AI technologies by regulators around the world. ChatGPT is not the only AI system that has faced regulatory challenges.

Regulators in Canada and France have also launched investigations into whether ChatGPT violates data privacy laws after receiving official complaints. Meanwhile, Spain has urged the EU’s privacy watchdog to launch a deeper investigation into ChatGPT.

The international scrutiny of ChatGPT and similar AI systems highlights the need for developers to be proactive in addressing privacy concerns and implementing safeguards to protect users’ personal data.

(Photo by Levart_Photographer on Unsplash)

Related: AI think tank calls GPT-4 a risk to public safety

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Deepfakes are increasingly being used for manipulation and humiliation. We’ve seen deepfakes of figures like disgraced FTX founder Sam Bankman-Fried to commit fraud, Ukrainian President Volodymyr Zelenskyy to spread disinformation, and US House Speaker Nancy Pelosi to make her appear drunk.

Last month, the Cyberspace Administration of China (CAC) announced rules to clampdown on deepfakes.

“In recent years, in-depth synthetic technology has developed rapidly. While serving user needs and improving user experiences, it has also been used by some criminals to produce, copy, publish, and disseminate illegal and bad information, defame, detract from the reputation and honour of others, and counterfeit others,” explains the CAC.

Providers of services for creating synthetic content will be obligated to ensure their AIs aren’t misused for illegal and/or harmful purposes. Furthermore, any content that was created using an AI must be clearly labelled with a watermark.

China’s new rules come into force today (10 January 2023) and will also require synthetic service providers to:

• Not illegally process personal information
• Periodically review, evaluate, and verify algorithms
• Establish management systems and technical safeguards
• Authenticate users with real identity information
• Establish mechanisms for complaints and reporting

The CAC notes that effective governance of synthetic technologies is a multi-entity effort that will require the participation of government, enterprises, and citizens. Such participation, the CAC says, will promote the legal and responsible use of deep synthetic technologies while minimising the associated risks.

(Photo by Henry Chen on Unsplash)

Related: AI & Big Data Expo: Exploring ethics in AI and the guardrails required

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