The US Congress has issued a warning to its employees not to install DeepSeek, a Chinese AI app, according to a report by Axios. The warning came from the chief administrative officer of the US House of Representatives, stating that the app is under review and is currently not authorized for official use.
DeepSeek, a low-cost Chinese AI model, has raised concerns because it threatens the dominance of US-based AI companies like OpenAI and Google's parent company, Alphabet. The app recently introduced a free AI assistant that claims to use less data and is cheaper than US alternatives. Within days, it became the most downloaded app on Apple’s App Store, which raised alarms about US leadership in AI. This caused a significant market shake-up, wiping out about $1 trillion in value from US tech stocks.
Meanwhile, there are ongoing US restrictions on Nvidia’s AI chips to stop China from accessing its most advanced technology. There are suspicions in the US that DeepSeek may be using banned technology. The US Commerce Department is reportedly investigating whether DeepSeek has illegally used restricted US chips, including Nvidia's H800. Although DeepSeek claims it bought the chips legally in 2023, there are still concerns about the potential use of other restricted chips. DeepSeek is also said to have Nvidia's H20 chips, which are less powerful and still exportable to China. However, US officials are now considering whether to impose restrictions on these chips as well.
The rapid rise of DeepSeek has been seen as a victory in China, where it is viewed as a counter to US efforts to restrict its tech industry. In the US, however, there are growing suspicions about how DeepSeek reached its current position and whether it used US tech illegally.