Asia Crackdown on DeepSeek's AI Amidst Security Fears

Governments across Asia are restricting the use of DeepSeek's artificial intelligence services due to security concerns, Nikkei Asia reports. This follows the Chinese startup's recent announcement that it has developed high-performing AI models at a fraction of the cost of its competitors, raising questions about data security.

Australia's Department of Home Affairs on Tuesday banned DeepSeek from government devices, citing an "unacceptable level of security risk" associated with the company's data collection practices. The department highlighted the potential for foreign government interference with data collected by DeepSeek, violating Australian law.

Home Affairs Minister Tony Burke emphasized the government's commitment to acting decisively when national security is at stake, but stressed that its approach is "country agnostic."

Several South Korean ministries have also taken action against DeepSeek. The defense ministry banned its use on work computers due to "security and technological concerns related to generative AI," while the foreign ministry is currently conducting a security review. The industry ministry, according to local broadcaster YTN, will restrict access to DeepSeek until its security can be verified.

Taiwan, following a recommendation from its Digital Affairs Ministry, has banned all government agencies from using DeepSeek to protect national security.

Japan, while not yet issuing an official ban, has urged caution. Digital transformation minister Taira Masaaki called for civil servants to avoid using DeepSeek until data protection concerns are addressed.

DeepSeek's announcement last month that it had created powerful AI models at a significantly lower cost than its competitors sent shockwaves through the industry, causing share prices of major tech hardware companies to tumble. The company's R1 AI assistant, which it claims rivals services from OpenAI but requires less investment in advanced chips, has raised concerns about the ability of US tech giants to compete with lower-cost alternatives.

China, in response to Australia's ban, issued a statement through its foreign ministry, calling the action a "politicization of economic, trade and technological issues." A Global Times article criticized the ban as being driven by "ideological discrimination, not technological concerns."

Australia's move to restrict DeepSeek follows a similar ban on TikTok on government devices in April 2023, and its earlier decision to block Chinese tech companies Huawei and ZTE from involvement in 5G networks.

Cyber CX, an Australian cybersecurity company, expressed near-certainty that DeepSeek and its user data are subject to the control of the Chinese government. The company's chief strategy officer called for operators of critical infrastructure to also ban DeepSeek, highlighting the broader concerns about technology reliant on ongoing connections with manufacturers in authoritarian states.