The rapid ascent of Chinese startup DeepSeek has reignited discussions about China surpassing Silicon Valley in artificial intelligence (AI), while also raising security concerns. On Wednesday, a security researcher discovered that DeepSeek’s app servers are located in China, fueling fears that user data could be accessed by the Chinese government or even used for surveillance.
That’s why experts advise anyone who uses the app—particularly people in high-risk relationships with China, such as human rights activists and members of targeted diaspora populations—to only do so with a new email address or by installing it on their server in a secure location. They’re also urging users to use the app only when connected to WiFi, not on 4G, so they’re sending less data. They should also keep personal information to a minimum and avoid sharing any information that could be used against them, such as photos or videos of their families.
Despite the alarmist headlines, however, many of these concerns are overblown. For example, it’s unclear whether DeepSeek’s model is any better than other models made by OpenAI, Anthropic, and others capable of reaching the same heights. In addition, stock analysts say the hype over DeepSeek is fueled by misconceptions about the company’s technological advancements and what they mean for U.S. chip makers like Nvidia and Broadcom.
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For instance, the Wall Street Journal reported that Nvidia’s stock fell 17% on Monday — wiping billions from its market cap—after DeepSeek said it took only two months and $6 million to build a large language model compared with years and millions of dollars that others have spent. The newspaper pointed out that Nvidia’s most advanced chips were used to train the DeepSeek model, but Nvidia hasn’t responded to requests for comment.
DeepSeek is a new Chinese tech company prioritizing research and long-term scientific advancement over profits. It’s part of a more significant movement by Chinese companies to compete with the U.S. in AI and push for artificial general intelligence. This superhuman-level technology can solve complex problems and make its own decisions.
In a post on social media platform X, venture capitalist Marc Andreessen praised DeepSeek and referred to it as “AI’s Sputnik moment,” a reference to the 1957 launch of the Soviet satellite that set off a Cold War space exploration race. He warned, however, that the U.S. government’s overregulation of the industry would hurt American companies and allow China to get ahead. He called for the Trump administration to “rethink its policies.” The administration, however, has no such plans, arguing that it’s in the best interests of America and its allies to compete with China in all industries. Due to national security concerns, The administration is trying to keep the popular Chinese social media app TikTok from being banned in the United States.