DeepSeek: The AI Lab Turned Controversial Global Player
You know we have to write about anything AI related that is making waves. And DeepSeek is definitely doing that.
On April 14, 2023, High-Flyer announced the launch of a dedicated artificial general intelligence (AGI) lab, focused on AI research independent of its financial business. This initiative led to the incorporation of DeepSeek on July 17, 2023, with High-Flyer as its primary investor and backer.
DeepSeek’s Breakthrough and the Debate on AI Development
DeepSeek quickly gained attention in the AI world, with former India IT Minister Rajeev Chandrasekhar highlighting its impact. He stated that DeepSeek’s success reinforced the idea that better datasets and algorithms—rather than increased compute capacity—are the key to advancing AI capabilities.
National Security Concerns: Hidden Risks in DeepSeek’s Code
Despite its technological achievements, DeepSeek is now at the center of global controversy. Cybersecurity experts have raised serious concerns about the tool’s potential data-sharing links to the Chinese government.
According to a report by ABC News, DeepSeek contains hidden code capable of transmitting user data directly to China. Ivan Tsarynny, CEO of the Ontario-based cybersecurity firm Feroot Security, conducted an analysis of DeepSeek’s code and discovered an embedded function that connects user data to CMPassport.com—the online registry for China Mobile, a state-owned telecommunications company.
Key Concerns Raised by Cybersecurity Experts:
- Direct server links to China: Tsarynny’s analysis uncovered pathways in DeepSeek’s code that enable data transmission to Chinese-controlled servers.
- Potential user data exposure: Users logging into DeepSeek may unknowingly create accounts in China, potentially exposing their personal information, search history, and online behavior to Chinese authorities.
- China Mobile’s history of U.S. bans: The FCC banned China Mobile from operating in the U.S. in 2019, citing national security risks. The company was later delisted from the New York Stock Exchange and officially classified as a security threat in 2022.
Global Backlash and Regulatory Actions
DeepSeek’s security concerns have sparked international scrutiny. Several governments and organizations have moved swiftly to restrict or ban its use:
- Italy, Taiwan, and Australia have banned DeepSeek’s AI app over data privacy concerns.
- The U.S. Congress, Navy, and other agencies have imposed strict limitations on its use.
- India’s Finance Ministry has advised against using AI tools like DeepSeek for handling government data.
John Cohen, a former acting Undersecretary for Intelligence and Analysis at the U.S. Department of Homeland Security, described DeepSeek as one of the most blatant cases of suspected Chinese surveillance. He emphasized that it joins a growing list of Chinese tech firms identified as potential national security threats.
The Future of DeepSeek
DeepSeek’s rapid rise and subsequent scrutiny reflect the broader tensions between AI innovation and national security. As regulators worldwide assess its risks, the company’s future remains uncertain—caught between technological breakthroughs and growing geopolitical concerns.
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