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Taiwan Bans Government Use of DeepSeek AI Over Security Concerns

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Taiwan’s Ministry of Digital Affairs announced on Friday that government departments are prohibited from using DeepSeek, a Chinese artificial intelligence (AI) service, citing national security risks. The ministry warned that DeepSeek’s operations involve cross-border data transmission, raising concerns about potential information leaks.

Given Beijing’s sovereignty claims over Taiwan and ongoing political and military tensions, Taiwanese authorities remain cautious about Chinese technology. The digital ministry emphasized that it will continue monitoring technological developments and adjust cybersecurity policies as necessary to safeguard national security.

This development follows similar concerns raised internationally. South Korea’s information privacy watchdog has stated plans to question DeepSeek regarding its data handling practices. Meanwhile, regulatory authorities in France, Italy, and Ireland are also examining the company’s use of personal information.

DeepSeek’s rapid rise has sparked global scrutiny. By Monday, its free AI assistant had surpassed OpenAI’s ChatGPT in downloads from Apple’s App Store. The surge in DeepSeek’s popularity coincided with a sharp decline in U.S. tech stocks, leading to a record $593 billion market value loss for Nvidia in a single day.

 

Britain Cancels $1.7 Billion of Computing Projects in Setback for Global AI Ambitions

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The U.K. government has canceled £1.3 billion ($1.7 billion) in computing infrastructure projects, marking a significant setback to its goal of becoming a global leader in artificial intelligence (AI). The cancellations include two major taxpayer-funded initiatives:

1. AI Research Resource: A £500 million ($640 million) project aimed at enhancing the U.K.’s compute infrastructure for AI research.
2. Exascale Computer: An £800 million ($1.02 billion) commitment to develop a next-generation exascale computer at the University of Edinburgh, capable of performing one trillion calculations per second.

These projects were intended to bolster the U.K.’s high-performance infrastructure, essential for running advanced AI models requiring substantial computational power and data. However, the newly elected Labour government has decided to redirect these funds to other fiscal priorities, citing the need for difficult spending decisions across all departments to restore economic stability and support national growth.

Fiscal Challenges and Strategic Shifts

The decision comes in the wake of a projected £22 billion ($28 billion) of unfunded commitments inherited from the previous Conservative administration. British Finance Minister Rachel Reeves recently announced a series of spending cuts to address this fiscal challenge.

Despite the cancellations, the government launched an AI Opportunities Action Plan last month to identify ways to enhance the U.K.’s computing infrastructure and support its industrial strategy with AI and other emerging technologies.

Regulatory Approach and Future Plans

Prime Minister Keir Starmer’s government plans to introduce new statutory regulations for the AI industry, diverging from the previous administration’s stance of avoiding formal legislation to prevent stifling innovation. The move signals a shift in strategy as the U.K. navigates its AI ambitions under the new government.