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Tuesday, February 18, 2025

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US Scrutinizes China’s AI App DeepSeek Over National Security Concerns

Washington – The White House is evaluating potential national security risks posed by DeepSeek, a new Chinese AI model, amid concerns over its impact on US tech dominance and intellectual property security.

Key Concerns

  • The National Security Council is reviewing DeepSeek’s implications.
  • White House AI & Crypto Czar David Sacks hinted at possible intellectual property theft via AI “distillation” – a technique where one AI model learns from another.
  • Tech stocks dipped globally as investors feared DeepSeek could undermine OpenAI and Google’s market dominance.

Trump & White House Response

  • Trump called DeepSeek a “wake-up call” for American AI firms to stay competitive.
  • Biden’s policies had restricted AI chip exports to China—Trump may continue or expand these measures.
  • US AI companies may take action to prevent “distillation” and slow down rival AI models.

AI Race & Future Strategy

  • China’s DeepSeek offers a cheaper and faster AI alternative.
  • Trump suggests lower-cost AI solutions could benefit the US industry instead of relying on massive spending.
  • The Commerce Department continues AI chip restrictions, with Trump’s nominee Howard Lutnick set for a Senate hearing on the issue.

Will the US double down on AI protectionism, or will competition drive innovation?

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