The artificial intelligence industry was jolted in January 2025 with the launch of DeepSeek, an AI app developed in China that quickly became one of the fastest-growing and most polarizing platforms in tech history. Within mere days of its release, DeepSeek catapulted to the top of Apple’s App Store charts, stunning investors and developers alike. But behind its meteoric success lies a rapidly growing storm of controversy, driven by concerns over national security, data privacy, and its connection to the Chinese government.
The situation has escalated so quickly that, as of May 2025, multiple U.S. states have already issued partial or complete bans on DeepSeek for government use. Meanwhile, the federal government, under President Donald Trump’s administration, is actively considering a nationwide ban. Similar discussions are unfolding in other parts of the world, signaling a potential global crackdown on what some are calling “the most dangerous AI app in the world.”
The DeepSeek Launch That Shook Global Markets
When DeepSeek made its debut in January 2025, its impact extended far beyond the tech world. Financial markets across Asia, Europe, and the U.S. experienced turbulence, with a reported $1 trillion wiped from global equity markets in just one week. This was largely attributed to fears that DeepSeek’s unprecedented affordability and open-source nature would upend the existing power structures in the AI economy—particularly challenging U.S. firms like OpenAI, Google DeepMind, and Anthropic.
DeepSeek’s sudden rise caught regulators off guard. While tech enthusiasts marveled at the app’s capabilities, governments around the world began questioning who controlled this technology and how it was being used. These concerns sparked debates that quickly led to policy proposals, state-level bans, and federal investigations.
Understanding DeepSeek: The AI Giant from China
DeepSeek is developed by a Chinese company headquartered in Hangzhou, China. The startup is heavily backed by High-Flyer, a quantitative hedge fund with substantial influence in Asia’s financial technology sectors. DeepSeek’s core offering is its series of large language models (LLMs), which are designed to rival leading AI models like OpenAI’s GPT-4 but at a fraction of the cost.
Unlike most proprietary AI models, DeepSeek takes a radically open-source approach. Its models are made freely available on platforms like GitHub and Hugging Face, making them easy to access for developers and organizations around the world.
What truly sets DeepSeek apart is its pricing model. The platform reportedly charges around $1.10 per 1 million output tokens—a unit of text generated by the AI. In contrast, OpenAI’s “o3” model charges approximately $40 per 1 million tokens. This means DeepSeek is more than 35 times cheaper, making it especially appealing to startups, universities, and small businesses.
As of April 2025, DeepSeek boasts an estimated 47 million daily active users, and recent data from Semrush indicates the company’s website receives over 456 million monthly visits from 67 million unique users.
Federal Scrutiny: Will DeepSeek Be Banned Nationwide?
President Donald Trump’s administration has turned its attention toward DeepSeek with growing urgency. In April 2025, the White House announced it was evaluating a sweeping ban on all DeepSeek models for American users. The move would mirror actions previously taken against TikTok and Huawei, driven by suspicions that the app could be a conduit for Chinese surveillance or influence operations.
While an executive order banning the app has not yet been signed, several actions hint at what may come. For example, the administration has discussed:
- Removing DeepSeek from U.S. app stores.
- Blocking access to DeepSeek’s APIs and websites from U.S. servers.
- Restricting U.S.-based cloud providers like Amazon Web Services and Google Cloud from hosting DeepSeek services.
- Halting shipments of advanced AI hardware, such as Nvidia’s H20 chips, to Chinese developers.
The tipping point may have been a report issued on April 16, 2025, by the House Select Committee on the Chinese Communist Party. This bipartisan investigation labeled DeepSeek a national security threat, citing allegations that:
- The company harvests user data and transmits it to servers in Beijing.
- It has illegally obtained up to 60,000 Nvidia GPUs, including 20,000 restricted H800 chips.
- Its language models have built-in content filters that promote Chinese state narratives while suppressing dissenting views.
These accusations, though still under investigation, have raised red flags throughout Washington. In one statement, President Trump referred to DeepSeek as “a wake-up call to America’s AI industry” and warned that its existence could “cripple U.S. innovation if left unchecked.”
The Problem with a Full Ban: Open-Source Loopholes
Unlike TikTok, which operates as a centralized platform, DeepSeek is open-source. This makes banning it more complicated. Even if the app is removed from major mobile stores, the underlying models will still be accessible via third-party platforms and repositories.
This decentralized nature makes it difficult for governments to fully restrict its use. Developers, researchers, and even casual users can simply download the models and run them locally or on private servers. As a result, many policymakers are considering targeted restrictions instead—such as banning use in government agencies or blocking integration with key infrastructure sectors.
A bill introduced in March 2025, called the “No DeepSeek on Government Devices Act,” has garnered bipartisan support. If passed, it would prohibit the installation or use of DeepSeek on all federal government hardware and systems. However, discussions are already underway about whether the legislation should extend to private companies working with sensitive data or infrastructure.
Economic Risks and Technological Fallout
Any move to ban DeepSeek will not be without economic consequences. The app’s low-cost models have been adopted by a wide range of U.S. businesses, particularly startups that can’t afford to use premium tools like GPT-4. A full ban could disrupt workflows, increase operational costs, and limit access to affordable AI innovation.
Moreover, experts warn that such a ban could escalate the ongoing U.S.-China tech war. China may respond by accelerating its domestic semiconductor development programs or retaliating against American companies operating within its borders. On the flip side, the ban could also create opportunities for U.S. AI companies to reassert dominance and develop competitive models at lower prices.
U.S. States Leading the Charge: A Patchwork of DeepSeek Bans
While the federal government debates a full-scale ban, several U.S. states have already moved forward with their own restrictions—particularly concerning government-issued devices and public employees.
Texas: The First State to Act
On January 31, 2025, Texas Governor Greg Abbott became the first to take official action against DeepSeek. His executive order banned the use of DeepSeek and several other Chinese-developed apps on all state-issued devices. The list of banned apps included:
- DeepSeek
- RedNote
- Webull
- Tiger Brokers
- Moomoo
- Lemon8
Abbott’s decision was motivated by cybersecurity experts who warned that these apps could compromise critical infrastructure, including Texas’s energy grid and port systems.
New York and Virginia Follow Suit
Less than two weeks later, on February 10, New York Governor Kathy Hochul enacted a similar ban targeting DeepSeek on government devices. She cited longstanding concerns over foreign surveillance and the state’s responsibility to protect sensitive data. Notably, New York had previously banned TikTok on government devices as early as August 2020.
On February 11, Virginia joined the movement, further validating national concerns about the app’s risks.
A Growing List of State-Level Bans
As of April 2025, the following U.S. states have officially banned DeepSeek on government devices:
| State | Date of Ban |
|---|---|
| Texas | January 31, 2025 |
| New York | February 10, 2025 |
| Virginia | February 11, 2025 |
| Iowa | February 19, 2025 |
| Florida | February 2025 |
| Georgia | February 2025 |
| South Dakota | March 4, 2025 |
| North Carolina | March 5, 2025 |
| Nebraska | March 5, 2025 |
| Tennessee | March 6, 2025 |
| Arkansas | March 6, 2025 |
| North Dakota | March 10, 2025 |
| Oklahoma | March 21, 2025 |
| Alabama | March 26, 2025 |
| Kansas | April 8, 2025 |
These state-level bans primarily target public-sector employees and state contractors. While the general public can still access DeepSeek’s website and apps in most of these states, restrictions on government usage are seen as a precautionary measure to protect sensitive data.
Global Attention: Will Other Countries Follow?
The controversy surrounding DeepSeek isn’t limited to the United States. Lawmakers in Canada, the United Kingdom, Australia, and several EU nations are reportedly reviewing the platform for possible regulatory actions. Some cybersecurity watchdogs in Europe have called for coordinated bans across the EU, citing GDPR violations and potential manipulation of political content.
India, which banned dozens of Chinese apps during the 2020 border disputes, is also reviewing DeepSeek. Given the country’s large developer base and increasing reliance on AI for automation, a decision either way will have broad implications.
What Happens Next?
As DeepSeek continues to dominate conversations around AI policy and international security, the world finds itself at a crossroads. The clash between innovation and national interest has never been more apparent.
If a federal ban is enacted in the U.S., it could set a precedent for how open-source AI is governed across borders. Alternatively, targeted restrictions may become the new norm—placing DeepSeek in a legal gray area where it exists but cannot be used in key sectors.
What’s clear is that DeepSeek is more than just another app. It’s a symbol of the next phase in the global AI arms race—and how nations respond to it could shape the future of artificial intelligence for years to come.
Countries That Have Banned or Restricted DeepSeek AI
As tensions between China and several Western-aligned nations escalate, the emergence of DeepSeek—a powerful and inexpensive AI app developed in China—has sparked significant international concern. While the U.S. leads efforts to potentially implement a full ban, many other countries have already taken decisive action to restrict or prohibit DeepSeek usage, particularly on government-operated devices and networks.
DeepSeek’s rise to prominence in early 2025 caught many off guard. Offering low-cost access to large language models comparable to GPT-4, the app quickly soared to the top of mobile app charts worldwide. However, its affiliations with a Chinese hedge fund, questionable data practices, and rapid global adoption have prompted swift responses from governments wary of cybersecurity threats and foreign data surveillance.
Below, we detail which countries have banned or restricted DeepSeek, the reasons behind their decisions, and what this could mean for the future of AI regulation.
Countries That Have Taken Action Against DeepSeek
| Country | Date of Ban | Type of Restriction |
|---|---|---|
| Italy | January 30, 2025 | Full ban from app stores; GDPR investigation |
| Taiwan | February 3, 2025 | Ban in government, schools, and state institutions |
| Australia | February 4, 2025 | Government device ban |
| India | February 6, 2025 | Ban for all government employees |
| Canada | February 7, 2025 | Government mobile device ban |
| South Korea | February 17, 2025 | Full government system ban, app store restrictions |
🇮🇹 Italy: GDPR Enforcement Triggers DeepSeek Ban
Italy was the first country in Europe to take direct action against DeepSeek. On January 30, 2025, the Italian Data Protection Authority (Garante per la protezione dei dati personali) ordered the removal of DeepSeek from all app stores in the country. The decision followed an investigation under the General Data Protection Regulation (GDPR), the EU’s strict data privacy framework.
The investigation concluded that DeepSeek lacked sufficient user data protection mechanisms and did not comply with transparency obligations regarding data storage and processing. When asked to clarify how it handled EU citizens’ data, DeepSeek argued it was not subject to EU jurisdiction—an argument Italy dismissed.
The ban was enforced swiftly, with a clear warning to other EU nations about the potential risks of foreign AI platforms handling sensitive citizen data without robust compliance mechanisms.
🇹🇼 Taiwan: National Security Above All
Given its ongoing geopolitical tensions with China, Taiwan acted quickly. On February 3, 2025, the Ministry of Digital Affairs formally banned DeepSeek across all government institutions, public schools, and state-run enterprises.
Officials cited fears of national information leaks to Chinese servers and described DeepSeek as a tool that could facilitate cyber-espionage. Taiwan had previously banned TikTok from government devices in 2022 for similar concerns.
The Taiwanese government emphasized the importance of information sovereignty and has advised all public institutions to avoid not just DeepSeek, but any AI apps originating from China until further reviews are conducted.
🇦🇺 Australia: Intelligence Agencies Raise the Alarm
Australia followed suit on February 4, 2025, after national security agencies flagged DeepSeek as an “unacceptable security risk.” Home Affairs Minister Tony Burke announced a formal ban on the app across all federal government-issued devices.
While the government stated the ban was not a direct reaction to DeepSeek’s Chinese origins, the decision aligned with broader efforts to shield the country’s digital infrastructure from foreign influence.
The app remains accessible to private citizens, but the Australian Cyber Security Centre has released a public advisory warning businesses and schools to avoid integrating DeepSeek into critical systems.
🇮🇳 India: A Financial Sector-Led Ban
India’s Ministry of Finance spearheaded DeepSeek restrictions by banning the app for use by all government employees on February 6, 2025. The decision was based on intelligence reports suggesting that DeepSeek could covertly transfer sensitive data to external servers.
Government officials expressed concern that even casual usage of DeepSeek on official devices could compromise national security—especially considering the Ministry’s regular handling of financial intelligence and infrastructure planning.
Interestingly, India has not yet imposed a blanket ban on the app for private use, but several state governments have begun implementing their own advisories, and major Indian tech firms have suspended experimentation with the platform.
🇨🇦 Canada: Following a Precedent of TikTok Bans
On February 7, 2025, Canada’s federal government barred DeepSeek from all government-owned mobile devices, citing serious privacy and data misuse concerns. The Treasury Board of Canada issued a notice stating that DeepSeek presented “an unacceptable level of risk to privacy and information security.”
Canada’s response to DeepSeek mirrored its earlier actions against TikTok, which was banned from government devices in early 2023. While Canadian citizens can still download and use DeepSeek, various provincial departments are now reviewing whether further restrictions are warranted.
🇰🇷 South Korea: Security Breach Leads to Immediate Action
South Korea issued its own ban on February 17, 2025, after intelligence uncovered unauthorized data transmission activities tied to DeepSeek. Investigators traced data transfers to China Mobile’s CMPassport.com, raising red flags about potential espionage.
In response, both the Ministry of Defense and the Ministry of Trade imposed a complete ban on the app across all government networks and employee devices. South Korea also coordinated with telecommunications companies to restrict DeepSeek’s mobile app availability in the country.
Officials stressed that the restrictions were precautionary and might be lifted if DeepSeek adopts transparent user data policies. However, no such negotiations have occurred to date.
Why Are Countries Banning DeepSeek?
Several key concerns are driving the global push to restrict DeepSeek’s availability:
- National Security Risks: DeepSeek’s potential connection to the Chinese government raises red flags about surveillance and foreign influence campaigns.
- Data Privacy Violations: Investigations have revealed that DeepSeek’s user data handling lacks compliance with key privacy laws like GDPR and other national standards.
- Lack of Transparency: DeepSeek’s refusal or failure to disclose data storage practices, encryption methods, and third-party access has prompted regulatory crackdowns.
- Cost-Based Disruption: DeepSeek’s extremely low pricing has also unnerved regulators. Governments fear that such aggressive pricing may undercut local innovation while drawing users into a data-compromising ecosystem.
What Could Happen Next?
With the U.S. considering a full nationwide ban on DeepSeek—including app store removals, domain blocking, and barring U.S. cloud providers from hosting its services—the global stance on DeepSeek may harden further.
If President Trump signs an executive order for a national ban, other allied nations, particularly in Europe, may follow. This could result in DeepSeek being delisted from Apple’s App Store and Google Play in multiple jurisdictions and its website being geo-blocked or throttled.
However, DeepSeek’s open-source models present a major challenge. Even if the app is removed from mainstream channels, versions of its models may remain accessible on platforms like GitHub, torrent sites, or through VPNs. That makes enforcement of a full ban technically and legally complex.
Final Thoughts: The Future of AI Regulation Is Here
The DeepSeek controversy represents a turning point in the global conversation around artificial intelligence, national security, and digital sovereignty. As governments grapple with the disruptive power of low-cost, foreign-built AI platforms, it’s becoming clear that proactive regulation is no longer optional.
In the coming months, expect further scrutiny not only on DeepSeek but on all AI models that originate outside trusted jurisdictions. The outcome of these early bans could shape the way nations govern digital tools for decades to come.