The US now intends to outlaw DeepSeek and will penalize and fine its users


US lawmakers are now moving towards an outright ban on DeepSeek, the Chinese artificial intelligence chatbot that has recently gained global attention. If the proposed legislation is passed, individuals using DeepSeek within US jurisdiction could face severe penalties, including hefty fines and imprisonment. The proposed ban, first reported by The Wall Street Journal, is being pushed forward by a group of US senators who are concerned about national security risks associated with the AI chatbot. The bill explicitly seeks to prohibit individuals and businesses from aiding the advancement of artificial intelligence capabilities in China. Lawmakers are particularly focused on preventing the chatbot’s use on government devices, citing privacy and data security risks similar to those that led to the ban on TikTok.

A separate report highlights the severity of the proposed penalties. Once the law comes into effect, individuals found using DeepSeek could face fines of up to $1 million, which is roughly Rs 6.5 crore. The bill does not only target individuals but also extends to businesses. Any company found deploying DeepSeek AI could be subjected to fines reaching as high as $100 million (over Rs 8 billion). Furthermore, individuals in violation of the law could face up to 20 years in prison, making this one of the most aggressive AI-related bans proposed in the US.

The bill is being spearheaded by Republican Senator Josh Hawley, who has been vocal about concerns regarding data privacy, security, and ethical considerations surrounding Chinese technology. Hawley argues that DeepSeek poses a potential national security threat because of its ties to China, raising fears that the chatbot may be collecting and transferring American user data to the Chinese government. These concerns mirror the justification behind the US government’s crackdown on TikTok, which was accused of similar data-sharing practices with Chinese authorities.

The US would not be the first country to take action against DeepSeek. Italy has already banned the AI chatbot over privacy concerns, while Taiwan has also implemented restrictions. Texas has independently banned the chatbot within its jurisdiction, and Australia is reportedly considering similar measures. Interestingly, while some countries are banning DeepSeek due to security concerns, India’s Union Minister of Information Technology, Ashwini Vaishnaw, recently stated that DeepSeek would soon be hosted on Indian servers to address data privacy concerns. This suggests that India may be looking for a regulatory approach rather than an outright ban.

DeepSeek AI has drawn significant attention over the past few weeks. While it was originally launched in 2023, its breakthrough moment came in January 2025 with the release of the DeepSeek-R1 model. This release ignited discussions in the AI community, particularly because DeepSeek has managed to rival established models like ChatGPT while being developed at a fraction of the cost. Its efficiency is particularly noteworthy given the ongoing US-China trade war and the US government’s decision to restrict exports of advanced AI chips to China. Despite these restrictions, DeepSeek has demonstrated that China is still making significant advancements in AI development, which has only heightened concerns among US lawmakers.

DeepSeek AI was founded by Liang Wenfeng in May 2023 and has quickly positioned itself as a competitive player in the AI space. The company’s latest models, DeepSeek-V3 and DeepSeek-R1, have been widely discussed for their ability to deliver high-quality results with fewer computational resources compared to traditional AI models. The DeepSeek-V3 model is designed for general-purpose tasks, whereas the R1 model is specifically optimized for complex reasoning. One of the key technical innovations behind DeepSeek is its use of the Mixture-of-Experts (MoE) architecture, which allows the AI to activate only a portion of its parameters at any given time, significantly increasing efficiency. This efficiency-driven design has set DeepSeek apart from its competitors, making it a cost-effective alternative to AI models like ChatGPT.

The rise of DeepSeek and the subsequent political response illustrates the growing intersection between AI development and global geopolitics. With the US taking aggressive steps to regulate AI tools linked to China, it remains to be seen how this ban will impact international AI research and development. The debate over AI security and data privacy is likely to intensify as AI technologies continue to evolve, and more governments take regulatory action to protect sensitive user data.


 

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