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U.S. Senators Call for Probe into Data Security Risks of Chinese AI Model DeepSeek

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A group of seven Republican U.S. senators led by Ted Budd urged the Commerce Department on Tuesday to investigate potential data security risks associated with Chinese open-source AI models such as DeepSeek.

The senators—including Jon Husted, Todd Young, John Cornyn, John Curtis, Bill Cassidy, and Marsha Blackburn—requested an assessment of whether applications using DeepSeek collect data that is transmitted back to Chinese servers, and if these AI models are sharing American personal or corporate information with China’s military or military-linked companies.

Their letter also sought information on any improper access by Chinese open-source models to export-controlled semiconductors or breaches of usage terms of U.S. AI models aimed at enhancing Chinese AI capabilities.

Bipartisan legislation has been proposed to ban DeepSeek’s use on federal government devices and networks, as well as prohibit its use by federal contractors in government projects.

Commerce Secretary Howard Lutnick stated in January that DeepSeek appeared to have misappropriated U.S. AI technology and promised to enforce restrictions. The Commerce Department did not immediately respond to requests for comment.

In June, Reuters reported that DeepSeek was assisting China’s military and intelligence services and was attempting to use Southeast Asian shell companies to obtain advanced semiconductors barred from shipment to China under U.S. export rules.

These developments underscore growing skepticism in Washington over DeepSeek’s rapid rise, with officials suggesting the Chinese firm’s AI prowess heavily depends on U.S. technology.

Based in Hangzhou, DeepSeek shocked the tech world in January by claiming its AI reasoning models matched or outperformed leading U.S. models at a fraction of the cost.

China’s Moonshot AI Launches Open-Source Model to Regain Market Share

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Chinese AI startup Moonshot AI unveiled its new open-source model, Kimi K2, on Friday, aiming to regain traction in the highly competitive domestic AI market. The model is designed with advanced coding skills and excels in general agent tasks and tool integration, enabling it to handle complex workflows more efficiently, the company said in a statement.

Moonshot claims Kimi K2 surpasses several mainstream open-source AI models, including DeepSeek’s V3, and competes closely with top U.S. models like Anthropic’s in certain coding-related functions. This release aligns with a growing trend among Chinese AI firms to open-source their models, contrasting with many U.S. tech giants, such as OpenAI and Google, which keep their most advanced AI technologies proprietary. However, some American companies like Meta have also embraced open-source AI models.

Open-sourcing helps companies build stronger developer communities, showcase technological prowess, and extend global influence—a strategic move by China to counter U.S. efforts to restrict its tech progress. Other Chinese tech giants that have open-sourced models include DeepSeek, Alibaba, Tencent, and Baidu.

Founded in 2023 by Tsinghua University graduate Yang Zhilin, Moonshot has become a key player in China’s AI scene, supported by major investors like Alibaba. The startup gained significant attention in 2024 for its long-text analysis and AI search capabilities but has seen its market position weaken after DeepSeek launched competitive low-cost models early this year.

According to the Chinese AI tracking site aicpb.com, Moonshot’s Kimi app was the third most-used AI product by monthly active users in August last year but slipped to seventh place by June 2025.

Czech Government Bans Use of Chinese AI Startup DeepSeek in Public Administration

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The Czech government has prohibited all use of services from Chinese AI startup DeepSeek within the country’s public administration, citing data security concerns, Prime Minister Petr Fiala announced on Wednesday. The decision aligns with similar restrictions imposed by Germany, Italy, and the Netherlands due to fears about data protection.

Fiala explained that DeepSeek, as a Chinese company, is legally required to cooperate with Chinese authorities, potentially granting Beijing access to data stored on the company’s servers in China. This risk prompted the government to ban DeepSeek’s AI products, applications, websites, and web services from official public use.

DeepSeek and the Chinese embassy in Prague have not yet responded to requests for comment. The startup made headlines earlier this year by claiming to offer a low-cost AI model competing with U.S. firms like OpenAI’s ChatGPT. However, concerns have grown in both the U.S. and Europe over DeepSeek’s handling of personal data.

DeepSeek’s privacy policy indicates that it stores user data, including AI requests and uploaded files, on Chinese servers, intensifying worries about user privacy and data security.