Chinese AI App Accused of Transferring User Data to State-Owned Company
A storm is brewing in the AI world as US lawmakers push for a ban on DeepSeek, a Chinese AI chatbot accused of transmitting user data to a prohibited state-owned telecom company. Security researchers recently uncovered troubling evidence suggesting DeepSeek is collecting and transferring sensitive user information, reigniting the geopolitical battle over AI and data security.
The Rise—and Immediate Scrutiny—of DeepSeek
DeepSeek, a relatively unknown AI startup just weeks ago, skyrocketed in popularity by offering free access to cutting-edge chatbot technology. Unlike competitors such as OpenAI’s ChatGPT or Google’s Gemini, which require subscriptions for advanced features, DeepSeek’s AI was entirely free to use—a move that raised eyebrows.
However, its meteoric rise was soon overshadowed by serious privacy concerns. Investigations found that DeepSeek’s AI model covertly transmitted user data to China Mobile, a state-owned telecom firm banned from US operations due to security risks. Further analysis of DeepSeek’s privacy policy confirmed the collection of IP addresses, device information, and even keystroke patterns, raising fears of mass surveillance.
DeepSeek’s Growing National Security Threat
Concerns over foreign influence in AI have put DeepSeek under intense scrutiny. The app has quickly emerged as a competitor to US-based AI leaders, raising fears that it could provide China with access to troves of user data—data that could be requisitioned by the Chinese government at any time.
Security researcher Luke de Pulford shared an alarming finding on X (formerly Twitter):
“@deepseek_ai collects your IP, keystroke patterns, device info, etc., and stores it in China, where all that data is vulnerable to arbitrary requisition from the 🇨🇳 State.”
These revelations have prompted swift responses from US lawmakers. Representatives Darin LaHood (R-IL) and Josh Gottheimer (D-NJ) are leading bipartisan efforts to ban DeepSeek from all government-issued devices, warning that its data collection poses a significant risk to national security.
Federal agencies—including NASA and the US Navy—have already moved to preemptively block DeepSeek from their networks. Texas has followed suit with state-level restrictions, and similar moves are expected in other states.
A Repeat of the TikTok Controversy?
The DeepSeek scandal is drawing comparisons to the ongoing TikTok debate. The Chinese-owned video-sharing platform has long faced accusations of spying on users and sharing data with Beijing—claims that TikTok has denied, though US officials remain skeptical.
However, DeepSeek’s case may be more severe. Unlike TikTok, which has not been conclusively proven to engage in data transfers to the CCP, cybersecurity investigators have already uncovered direct evidence of DeepSeek’s data-sharing practices.
Governments worldwide are taking note. Beyond the US, Australia, South Korea, and Italy have all taken steps to limit DeepSeek’s presence on government networks, signaling a growing global crackdown on AI tools tied to foreign adversaries.
The AI Arms Race: US vs. China
The battle over DeepSeek highlights the larger geopolitical struggle in artificial intelligence. The US has dominated the AI industry, with OpenAI, Google, and Anthropic leading the charge. But China’s AI sector is catching up quickly, with government-backed firms investing billions to compete with their American counterparts.
DeepSeek’s aggressive pricing model—offering powerful AI tools for free—has raised suspicions about China’s long-term strategy. Critics argue that the app is a Trojan horse, luring users in with free AI services while harvesting valuable data for intelligence and surveillance purposes.
Will the US Ban DeepSeek?
If the proposed legislation gains traction, DeepSeek could soon face a full-fledged US ban, similar to the restrictions placed on Huawei and ZTE in previous years. Given rising tensions between Washington and Beijing, lawmakers are unlikely to take DeepSeek’s data-sharing lightly.
As AI becomes the next battleground in global cybersecurity, questions about data privacy, national security, and the ethical implications of AI tools will only intensify. For now, DeepSeek’s rapid rise has turned into an international controversy, and its future hangs in the balance.
Sources: https://ai.nd.edu/news/deepseek-explained-what-is-it-and-is-it-safe-to-use/, https://www.artificialintelligence-news.com/news/deepseek-ban-china-data-transfer-boosts-security-concerns/
