OpenAI Pushes for Ban on Chinese AI DeepSeek, Citing Espionage and Security Risks

March 19, 2025 | Washington, D.C.

In a growing flashpoint between U.S. and Chinese tech sectors, OpenAI, the San Francisco-based AI leader supported by Microsoft, has urged U.S. and allied governments to restrict DeepSeek, a Beijing-based AI startup. The call comes amid allegations that DeepSeek’s open-source models could be leveraged for state-sponsored cyber espionage by the Chinese Communist Party (CCP).

U.S. Commerce Department Blocks DeepSeek on Federal Networks

An internal directive from the U.S. Department of Commerce has banned DeepSeek’s chatbot from all government-issued devices. The move mirrors previous national security actions taken against Huawei and ByteDance’s TikTok.

“DeepSeek poses potential risks to our sensitive information systems,” a Commerce official confirmed, referencing the startup’s ties to China’s growing AI military-civil fusion strategy.

DeepSeek’s Rise Fuels Market Anxiety

Founded in January 2025 by Chinese AI researcher Liang Wenfeng, DeepSeek has disrupted the AI landscape with its R1 reasoning model, challenging major players like Google DeepMind, Anthropic, and Meta AI.

DeepSeek’s rapid adoption and competitive pricing triggered a dip in U.S. tech stocks, including Alphabet Inc. and NVIDIA, as Wall Street braces for intensified competition from China’s AI sector.

OpenAI Cites National Security, Faces Criticism

OpenAI submitted its proposal to the White House Office of Science and Technology Policy on March 13, citing concerns that DeepSeek’s technology may be susceptible to China’s National Intelligence Law, which requires cooperation with government security agencies.

The request aligns with the Trump administration’s AI Action Plan 2025, aimed at safeguarding U.S. intellectual property and infrastructure.

However, cybersecurity experts such as Robert Caulk of AskNews.app and Michael Newman of Graham Media Group argue that the open-source nature of DeepSeek’s model limits direct CCP influence. Newman stressed, “The real concern is about data residency and infrastructure, not necessarily the model code.”

OpenAI Softens Position

Amid backlash, OpenAI clarified on March 15 that it is not advocating for a full ban but for tighter export controls on AI infrastructure dependent on PRC-based cloud services.

Spokesperson Liz Bourgeois explained, “We propose limiting U.S. compute access where Chinese technology underpins data centers, ensuring more secure global AI deployment.”

Global Response Brewing

The European Commission and Australia’s Cyber Security Centre are now reviewing DeepSeek’s compliance with regional security standards, adding fuel to escalating AI tensions between Washington, Beijing, and Brussels.

The Bigger Picture

With entities like The Pentagon, NATO, and the Five Eyes intelligence alliance closely monitoring AI advancements, this OpenAI-DeepSeek standoff symbolizes the intensifying struggle for dominance over next-generation AI technologies.

As the battle between Silicon Valley and Beijing’s Zhongguancun tech hub deepens, experts warn that AI regulation will increasingly become a tool of global power politics.

Stay Tuned for more news and insights on Open Ai and DeepSeek’s case.