DeepSeek's low-cost AI models triggered a major sell-off in global equity markets in January.
DeepSeek is based in China's Hangzhou and is funded by hedge fund High-Flyer
Photo Credit: Reuters
The Trump administration is weighing a ban on Chinese AI chatbot DeepSeek from US government devices over national-security concerns, a person familiar with the matter said on Friday.
US officials are worried about DeepSeek's handling of user data, which the company says it stores in servers located in China, according to the Wall Street Journal, which first reported the news.
Administration officials are also considering banning the chatbot from app stores and putting limits on how US-based cloud service providers could offer DeepSeek's AI models to their customers, the Journal said, adding that those discussions are still at an early stage.
DeepSeek's low-cost AI models triggered a major sell-off in global equity markets in January, as investors worried that its arrival could threaten current AI market leaders.
A group of 21 state attorneys general urged Congress on Thursday to pass a bill to bar government devices from downloading and using DeepSeek artificial intelligence software on government devices.
The White House did not immediately respond to a request for comment.
© Thomson Reuters 2025
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