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In a bold move, OpenAI is calling out Chinese AI lab DeepSeek as “state-subsidized” and “state-controlled.” They are urging the U.S. government to consider banning models from DeepSeek and similar operations supported by the People’s Republic of China (PRC).
The proposal, part of the Trump administration’s “AI Action Plan,” raises concerns about the security of DeepSeek’s models, particularly their R1 “reasoning” model. OpenAI argues that Chinese law requires DeepSeek to comply with demands for user data, posing privacy and security risks, including the threat of IP theft.
While it’s unclear if OpenAI’s concerns extend to DeepSeek’s API or open models, companies like Microsoft, Perplexity, and Amazon host the latter on their own infrastructure, limiting the Chinese government’s access to user data.
Despite lacking a clear link to the Chinese government, DeepSeek has attracted increased attention from the PRC, with founder Liang Wenfeng recently meeting with Chinese leader Xi Jinping.
In response to the controversy, OpenAI clarified that they are not advocating for restrictions on using models like DeepSeek. Instead, they propose changes to U.S. export rules to allow more countries access to U.S. compute, provided their data centers do not rely on PRC technology with security risks.
Tech and VC heavyweights are now joining the conversation on the Disrupt 2025 agenda, adding further complexity to the debate.
