DeepSeek in Deep Trouble
In 2023, DeepSeek, a tech startup, was founded in Hangzhou, China. Later that year, DeepSeek released their first artificial intelligence large language model. DeepSeek then released its newest model in December 2024 and quickly garnered attention. DeepSeek’s artificial intelligence chat robot is advertised as “on par with similar models . . . such as ChatGPT [and] more cost-effective in its use of expensive Nvidia chips to train the system.” DeepSeek has taken the tech world and Wall Street by storm soon after President Donald Trump introduced an upcoming venture with OpenAI, the creator of ChatGPT. Now, cybersecurity concerns are surrounding DeepSeek.
Since DeepSeek’s newest release, governments across the world seem to be wary about “the possibility that data and other information collected [and] could be shared with China’s government.” In February 2025, Bloomberg News announced that Taiwan has barred their agencies and service providers from using DeepSeek technology. Taiwan’s Ministry of Digital Affairs based this decision on security concerns. The Ministry’s official statement released on January 31, 2025, said “cross-border transmission and information leakage” were main concerns and that DeepSeek product use “endangers national information and communications security.” Additionally, the privacy regulator of Italy ordered a restriction on DeepSeek use to ensure the protection of Italian users. The United Kingdom has simply provided warning regarding the use of DeepSeek. Some United Kingdom officials “have been privately asking businesses to be careful about the information they share with DeepSeek and other Chinese AI apps.” These warnings have mentioned “concerns that it could be accessed by the Chinese state.”
Officials from the United States are investigating whether DeepSeek circumvented federal restrictions by purchasing Nvidia chips through Singaporean third parties
Apart from cybersecurity concerns, DeepSeek is under United States scrutiny for how it obtained Nvidia chips. Officials from the United States are investigating whether DeepSeek circumvented federal restrictions by purchasing Nvidia chips through Singaporean third parties. DeepSeek’s burgeoning success in the artificial intelligence world is impressive to many due to its cost-effectiveness and high efficiency. Singapore’s customs and law enforcement departments have said they are committed to collaborating with the United States to address concerns. President Donald Trump met with Nvidia’s Chief Executive Officer, Jensen Huang in early February. Nvidia has since stated that they do not believe that United States restrictions were violated by DeepSeek. President Donald Trump later announced that the United States will impose tariffs on the chips. This could have a significant negative impact on Nvidia.
The concerns that have been raised following DeepSeek’s newest release could have great consequences. If the United States imposes their proposed tariffs costs for innovation in this field could skyrocket. Increased costs be a significant barrier for new product development and innovation. Tariffs could also lead to reduced competition which can mean companies could become complacent. Retaliation from other countries could lead to more tariffs and disrupt other markets.
Denise Bahena-Bustos
Denise attended Meredith College where she received a Bachelor of Science in Public Health and Political Science. In law school, Denise has been a Dean’s Fellow and involved in the Hispanic Latino Law Student Association, Women in Law, and the Barrister’s and Social Committee.