China’s DeepSeek ban begins in US—And it started in Elon Musk’s new home state

Texas has become the first state in the United States to ban the Chinese-owned AI app, DeepSeek, due to escalating concerns about national security. Governor Greg Abbott signed an order prohibiting the use of DeepSeek on all state-issued devices, citing fears that the Chinese Communist Party could access sensitive data. The ban places Texas at the forefront of a global movement against the app, which has raised concerns due to its data storage practices and links to the Chinese government.

Abbott explained the reasoning behind the ban, stating, “Texas will not allow the Chinese Communist Party to infiltrate our state’s critical infrastructure through data-harvesting AI and social media apps." He added that state agencies and employees handling critical infrastructure, intellectual property, and personal information must be shielded from “malicious espionage operations” by the Chinese government.

DeepSeek’s Global Rise and Security Concerns

DeepSeek, a Chinese-developed artificial intelligence application, has gained significant attention worldwide for its ability to outperform OpenAI at a much lower cost. However, its popularity has been clouded by concerns regarding data security. Reports have indicated that the app stores user data on servers in China, raising fears about the potential for Chinese authorities to access this information under local laws, which mandate that companies share data with the government if requested.

These concerns have already led to the US Navy banning the app, with NASA and other government agencies following suit. DeepSeek has also been banned from US military devices and is under intense scrutiny by US lawmakers and regulators.

Governor Abbott’s move aligns with growing concerns in the United States about the potential risks posed by Chinese apps like DeepSeek, which may compromise user privacy and national security. Abbott’s statement underscores Texas’ commitment to safeguarding its state infrastructure from foreign threats: "Texas will continue to protect and defend our state from hostile foreign actors."

Elon Musk’s Influence in Texas

The DeepSeek ban also comes at a time when Texas is becoming increasingly significant in the tech world. The state is now home to the headquarters of Elon Musk's SpaceX and his social media platform, X, which relocated from California in 2023. Musk’s decision to move to Texas was partly in response to a controversial law in California that required teachers to notify parents if their child changed their name or gender identity at school. Musk, known for his outspoken views, expressed frustration with the law, further cementing his decision to move his companies to Texas.

Musk's move to Texas has been framed as part of the state's broader appeal to tech companies and innovators. SpaceX's headquarters in Texas, combined with Musk’s increasing influence, further elevates the state as a hub for technological progress. However, the DeepSeek ban also reflects a growing unease about foreign tech companies potentially compromising national security.

Global Scrutiny of DeepSeek

The scrutiny surrounding DeepSeek is not limited to the United States. Italy, Taiwan, and Australia have also taken action against the app, citing national security concerns. Italy’s Data Protection Authority ordered a nationwide ban on DeepSeek, preventing it from being downloaded from Apple and Google app stores. The Italian regulator also opened an investigation into the app's compliance with European data protection laws.

Taiwan's Ministry of Digital Affairs followed suit, banning DeepSeek from government agencies and urging companies involved in critical infrastructure to take similar action. Australia imposed its own ban on 4 February 2025, with Home Affairs Minister Tony Burke stating that the app posed a significant national security risk.

The rising global backlash against DeepSeek reflects a broader trend of governments and security experts taking a stand against Chinese tech companies and their potential influence over global data. As more countries join the list of those investigating or imposing restrictions on DeepSeek, the app’s future remains uncertain.

US Legislation on Chinese AI Apps

Amid growing concerns, US lawmakers are also considering tougher measures to restrict the use of DeepSeek and other Chinese-developed technologies. Republican Senator Josh Hawley introduced a bill that would impose severe penalties for using AI products developed in China. The bill, though not mentioning DeepSeek specifically, proposes fines of up to $1 million for individuals and up to $100 million for businesses found in violation. The bill also includes the possibility of jail sentences of up to 20 years for individuals caught advancing AI capabilities in China.

Security experts have warned that DeepSeek’s data storage policies could expose businesses and governments to significant risks. Bill Conner, CEO of automation firm Jitterbit, and former US security advisor, stated, “DeepSeek represents a clear risk for any enterprise whose leadership values data privacy, security, and transparency.” Conner added that the app’s shared cloud service model, with data stored in China, introduces “unknown risks to data privacy, compliance mandates, and security controls.”

Texas' decision to ban DeepSeek is just the beginning of a broader global movement against the Chinese app. With growing concerns over national security, privacy, and data protection, more countries are likely to follow suit in the coming months. As the US, along with other nations, grapples with the implications of Chinese-developed AI technologies, the debate over data security and national sovereignty will continue to shape the future of digital governance.