Summary:

The launch of Chinese AI application DeepSeek in the U.S. has raised national security concerns among officials, lawmakers, and cybersecurity experts. The app quickly became the most downloaded on Apple’s store, disrupting Wall Street and causing a record 17% drop in Nvidia’s stock. The White House announced an investigation into the potential risks, with some lawmakers calling for stricter export controls to prevent China from leveraging U.S. technology.

Beyond economic impact, experts warn DeepSeek may pose significant data security risks, as Chinese law allows government access to company-held data. Unlike TikTok, which stores U.S. data on Oracle servers, DeepSeek operates directly from China, collecting personal user information. The app also exhibits censorship, blocking content on politically sensitive topics like Tiananmen Square. Some analysts argue that, as an open-source model, DeepSeek may not be as concerning as TikTok, but critics worry its widespread adoption could advance China’s influence through curated information control.