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Launched in January, DeepSeek, designed by Hangzhou-based entrepreneur Liang Feng, quickly made waves over established AI systems like OpenAI’s ChatGPT.
Unlike its competitors, which have spent billions of dollars developing AI models, DeepSeek claims to have built its latest program, DeepSeek R1, with a fraction of the cost—reportedly under $6 million, a sum much lower than the multi-million dollar budgets of US tech giants.
This cost-effectiveness caught the attention of tech enthusiasts and investors worldwide. The app quickly soared to the top of the Apple App Store in just a week, setting off a ripple effect in the tech sector. Its success also contributed to a major drop in semiconductor chip-manufacturer Nvidia's stock.
However, this rapid rise has not been without controversy.
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Governments around the world are beginning to voice serious concerns about the software, especially regarding security and data privacy.
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DeepSeek: Understanding India's concerns
In India, government officials have raised alarms over DeepSeek's potential to compromise citizens' privacy and security.According to senior officials, Centre is expected to issue an advisory soon, warning users about the app's potential risks. The government is particularly concerned about DeepSeek's ability to track a wide range of user data, including behavioral patterns, device information, and even keystrokes.
“We can’t use it like we use ChatGPT. We have to be careful,” a senior government official told ET.
The country's cybersecurity agency, CERT-In, has been conducting a detailed inquiry into the risks posed by DeepSeek. Government officials have raised concerns about the lack of accountability and transparency in how China manages user data, especially considering there is no clear regulatory framework for how personal data is stored and used.
“India, as a nation, is not comfortable with allowing China access to Indians’ data,” said one official familiar with the government’s stance.
Last week, the finance ministry had asked its officers to cease using AI tools like ChatGPT and DeepSeek.
South Korea's stance; U.S. mulling restrictions?
The United States was one of the first countries to take action. According to the Wall Street Journal, lawmakers are preparing a government bill to ban DeepSeek on government-owned devices, amidst mounting security concerns.Tired of too many ads? Remove Ads
NASA, in particular, blocked DeepSeek from its systems and employee devices on January 31. A few days earlier, the US Navy had warned its personnel against using the app, citing potential risks related to security and the ethical implications of its origin.
Similarly, other US institutions are considering measures to limit access to DeepSeek, as concerns about the app's safety grow.
In South Korea, the Ministry of Trade, Industry, and Energy announced a temporary ban on DeepSeek for government employees on January 31, following concerns about how user data would be managed.
Additionally, the country's Personal Information Protection Commission sent a formal request to DeepSeek, seeking clarity on how the platform handles personal information. Korea Hydro & Nuclear Power, a government-run utility, also restricted access to the AI service, reinforcing the growing skepticism in the country.
Meanwhile, the Australian government took a decisive step, with the Department of Home Affairs issuing a statement on February 6 mandating a complete block on DeepSeek across all government devices.
The government explained that the decision was made to protect Australia's national security interests. “We are acting in the best interest of our national security,” said Home Affairs Minister Tony Burke.
Italy and Taiwan's actions on DeepSeek
In Italy, the Data Protection Authority (Garante) swiftly acted on January 30, issuing an order to restrict the processing of Italian users' data by DeepSeek. The move followed questions about the platform's transparency regarding its data collection practices.Two days prior, the Garante had sent an inquiry to the company seeking answers about how it stored and utilized personal data, underlining the importance of data protection in the digital age.
Meanwhile, Taiwan's government blocked the use of DeepSeek for public sector departments. The government cited security risks associated with the app as the primary reason for this decision. Taiwan's move aligns with broader global concerns over the potential misuse of user data by Chinese tech firms, particularly those without clear regulations on data security.
Why are governments worried about DeepSeek?
The primary concern driving these global restrictions is the fear of data misuse and the lack of clarity about how DeepSeek handles sensitive user information.According to DeepSeek's privacy policy, the app collects a range of data, including personal information such as email addresses and phone numbers, as well as chat history and technical details about the user's device. This data can be shared with third-party service providers and advertising partners, raising further concerns about its potential misuse.
Cybersecurity experts have raised alarms about the app’s code, with some suggesting that it might be capable of transmitting user data directly to the Chinese government.
Ivan Tsarynny, CEO of Feroot Security, told ABC news that DeepSeek could potentially send user data to China Mobile, a telecommunications company owned by the Chinese government. While this claim has not been independently verified, it adds fuel to the growing suspicion that the app could be a tool for surveillance.
(With inputs from agencies)
