Trump Administration Weighs Technology Restrictions Amid National Security Concerns
The Biden administration initiated discussions about potentially imposing technology export restrictions on Chinese AI company DeepSeek, and these considerations are continuing under President Trump, according to recent reports. DeepSeek, which launched its popular AI chatbot in January 2025, has triggered widespread concern among U.S. officials regarding potential national security risks.
The Chinese AI startup has attracted significant attention since January when its
DeepSeek-R1 model was released, quickly becoming the most downloaded app on Apple's App Store in the United States. What particularly alarmed U.S. policymakers and tech industry leaders was DeepSeek's claim that it developed its advanced AI model at a fraction of the cost of American competitors like
ChatGPT.
Government Restrictions Expanding
Several U.S. federal agencies, including NASA, the Pentagon, and the Navy, have already prohibited DeepSeek's use on government-issued devices. This mirrors previous actions involving other Chinese apps and reflects ongoing concerns about data security and potential espionage.
Many state governments have followed suit, with Virginia, Texas, New York, Oklahoma, and South Dakota implementing bans on using DeepSeek on state-owned devices. On March 21, Oklahoma Governor Kevin Stitt announced a ban on downloading or accessing DeepSeek's AI models on state-owned devices, citing security risks, regulatory compliance issues, and a lack of robust security safeguards.
Congressional Action and National Security Concerns
Representatives Josh Gottheimer (D-NJ) and Darin LaHood (R-IL) introduced the No DeepSeek on Government Devices Act in February 2025, demonstrating bipartisan concern about the Chinese AI company. The bill would ban the use of DeepSeek on all federal government devices.
The House Select Committee on the Chinese Communist Party has been particularly vocal about its concerns. Committee Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi sent a letter to National Security Advisor Michael Waltz, asking the administration to consider placing export controls on Nvidia's H20 and similar chips to prevent Chinese AI systems from gaining market share in the United States.
Critics say that DeepSeek users may be unknowingly exposing sensitive and proprietary information – ranging from financial records to contracts and documents – raising privacy and national security concerns.
DeepSeek's Impact on the AI Landscape
DeepSeek was founded in July 2023 by Liang Wenfeng, who also co-founded High-Flyer, a Chinese hedge fund that owns DeepSeek. The company made waves in the AI industry by claiming it trained its V3 model for just US$6 million—far less than the US$100 million cost for OpenAI's GPT-4—using approximately one-tenth the computing power consumed by Meta's comparable models.
What particularly alarmed U.S. tech industry observers was how DeepSeek managed to overcome U.S. export restrictions on advanced AI chips. The company adapted to work with less powerful but more widely available H800 GPUs, optimizing its model to run efficiently on lower-end hardware without sacrificing performance.
The revelation sent shockwaves through the stock market in January, with Nvidia losing approximately $600 billion in market value, the largest single-company decline in U.S. stock market history.
Open-Source Controversy
Part of what makes DeepSeek controversial is its open-source approach. Unlike proprietary AI models from companies like OpenAI, Google DeepMind, and Anthropic, DeepSeek's models are provided under the MIT License, enabling anyone to use, modify, and deploy the models freely.
This open approach has raised concerns about potential misuse, especially given reports that DeepSeek's models lack robust safeguards. A recent study by CISCO found that out of fifty attempts to circumvent safety measures, DeepSeek failed to block a single harmful prompt, while
ChatGPT blocked 86% of similar attempts.
Trump Administration's AI Policy
President Trump has made U.S. leadership in AI a priority. In one of his first technology policy moves, he signed Executive Order 14179, "Removing Barriers to American Leadership in Artificial Intelligence," which established a policy to "sustain and enhance America's global AI dominance" for economic competitiveness and national security.
On March 25, the U.S. Senate confirmed Michael Kratsios as the Director of the White House Office of Science & Technology Policy with a vote of 74-25. Kratsios, who played a significant role in shaping U.S. AI policy during Trump's first administration, stated he would "seek to develop additional technical standards for the development and deployment of AI systems" through a "use-case and sector-specific, risk-based policy approach."
The White House Office of Science & Technology Policy recently closed a public comment period for input on the AI Action Plan, receiving 8,755 comments from various stakeholders. The final AI Action Plan is expected by July 2025.
As the U.S. contemplates further restrictions on DeepSeek, the company's rapid rise highlights the ongoing geopolitical competition in AI development and the challenges of balancing innovation with national security concerns.
