Digestly

Feb 7, 2025

DeepSeek Should Be Banned Lawmakers Urge—After AI Chatbot Linked To Banned Chinese Firm

Forbes - DeepSeek Should Be Banned Lawmakers Urge—After AI Chatbot Linked To Banned Chinese Firm

A new bipartisan bill proposes banning the Chinese AI startup Deep Seek from government-owned devices in the U.S. This follows a report linking Deep Seek's AI chatbot to a banned Chinese telecommunications company, raising national security concerns. Deep Seek's generative AI model, released in the U.S. last month, quickly gained popularity, claiming to outperform competitors like ChatGPT. However, its release caused significant market disruptions, including a $600 billion loss for Nvidia, amid speculation that Deep Seek operates at a lower cost than U.S. rivals. The bill, introduced by Republican Representative Darren LaHood and Democratic Representative Josh Gottheimer, mirrors previous legislation banning TikTok from government devices. Concerns include Deep Seek's potential ties to the Chinese government and the risk of user data being sent to China. Some Congressional offices have been advised against using Deep Seek, and all House devices are barred from accessing the app. The proposed legislation, titled the 'No Deep Seek on Government Devices Act,' would require the Office of Management and Budget to establish guidelines for removing Deep Seek from federal devices within 60 days, with exceptions for law enforcement or national security activities. The bill also seeks to ban future products from Highflyer, the hedge fund backing Deep Seek.

Key Points:

  • A bipartisan bill seeks to ban Deep Seek from U.S. government devices due to security concerns.
  • Deep Seek's AI model quickly gained popularity but caused market disruptions, including a $600 billion loss for Nvidia.
  • Concerns include potential ties to the Chinese government and risks of data being sent to China.
  • The 'No Deep Seek on Government Devices Act' mandates guidelines for removing Deep Seek from federal devices.
  • The bill also aims to ban future products from Highflyer, the hedge fund supporting Deep Seek.

Details:

1. 🚨 Bipartisan Bill Targets AI Security Issues

  • A bipartisan bill proposes to ban the Chinese AI startup Deep Seek from government-owned devices, citing security concerns.
  • The bill was introduced following a report linking the AI chatbot to a banned Chinese telecommunications company, highlighting potential national security risks.
  • The legislation aims to enhance AI security by preventing potential threats from foreign entities, especially those connected to previously banned companies.
  • The bill could significantly impact AI deployment on government-owned devices, emphasizing the need for stringent security measures.

2. 📊 Deep Seek's Market Impact and Controversy

2.1. Market Impact of Deep Seek's AI Model

2.2. National Security Concerns

3. 🌐 National Security and TikTok Comparisons

  • Deep seek's market entry is marked by significant cost advantages, as it operates at a fraction of the cost compared to US-based rivals.
  • President Donald Trump highlighted Deep seek as a 'wake-up call' for US industries, suggesting it could prompt changes in cost management and competitive strategies.
  • Despite acknowledging the cost benefits, Trump also recognized Deep seek's entry as a 'positive development' due to its potential for economic innovation.
  • Deep seek raises national security concerns akin to those faced by TikTok, primarily due to accusations of having ties to China. This highlights a recurring theme of evaluating foreign tech companies for potential security threats.

4. 🗳 Legislative Efforts to Ban Deep Seek

  • Republican representative Darren LaHood of Illinois and Democratic representative Josh Gottheimer of New Jersey introduced legislation to ban Deep Seek from federal devices, mirroring past efforts that banned TikTok due to security concerns.
  • The proposal reflects bipartisan concern about Deep Seek's potential to surpass current U.S. AI technology and risks associated with data privacy and national security, especially the potential for the app to transmit personal information to China.
  • While the level of support from other lawmakers remains uncertain, the bill highlights ongoing legislative efforts to address national security risks posed by foreign technology.
  • The legislation could significantly impact technology policy, reflecting a growing trend of scrutinizing foreign tech companies and their influence on U.S. data security.

5. 🔍 Security Concerns and Cyber Risks

  • Government and Congressional offices are warned against using the Deep Seek app due to significant security risks.
  • All devices in the House are strictly prohibited from accessing the Deep Seek app to ensure data protection.
  • Cybersecurity analysis firm Root Security identified a critical vulnerability: hidden code in the Deep Seek app potentially transmits user login information to China Mobile.
  • China Mobile, a company banned in the US for its connections with the Chinese government, poses a severe threat if it gains access to sensitive information through this app.

6. 📜 Legislative Details and Future Outlook

  • The 'No Deep Seek on Government Devices Act' mandates the Office of Management and Budget to develop guidelines within 60 days for the removal of Deep Seek from federal devices, with explicit exceptions for law enforcement or national security-related activities, ensuring these sectors can maintain operational effectiveness.
  • This legislation seeks to ban any future products developed by Highflyer, the hedge fund backing Deep Seek, potentially disrupting Highflyer's strategic plans and product development pipeline.
  • The lack of immediate responses from Deep Seek or Highflyer highlights potential strategic recalibrations, as they may need to address compliance and future innovation strategies in light of the new legislative landscape.
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