DeepSeek Triggers Global Scrutiny, Security Concerns, Federal Bans

The new artificial intelligence program from China has triggered bans in several countries and leaves questions over ethics and data security.

The DeepSeek logo is seen at the offices of Chinese AI startup DeepSeek in Hangzhou, in China's eastern Zhejiang Province, on Feb. 5, 2025. STR/AFP via Getty Images

News Analysis

DeepSeek, a Chinese AI startup, has surprised markets by releasing a relatively cheap platform using slower chips yet at a performance level similar to its American counterparts. As a result, Nvidia Corp. saw its stock tumble by double digits on Jan. 27; a full recovery is yet to happen. The market reacted out of fear that the chipmaker’s dominant lead and American AI leadership had been lost.