DeepSeek users in US could face million-dollar fine and prison time under new law

Hugely popular Chinese AI app has raised security, privacy and ethical concerns

Anthony Cuthbertson
Wednesday 05 February 2025 05:43 EST
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DeepSeek AI replicated for just $30 using Countdown game

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A newly proposed law could see people in the US face significant fines or even jail time for using the Chinese AI app DeepSeek.

The bill, filed by Republican Senator Josh Hawley, aims to “prohibit United States persons from advancing artificial intelligence capabilities within the People’s Republic of China, and for other persons”.

The proposed law would prevent the importation of “technology or intellectual property” developed in China, with anyone violating the restrictions facing up to 20 years in prison. Individuals could also be fined up to $1 million, while for businesses it could reach up to $100m.

>>Where in the world is DeepSeek banned and why?<<

Although it does not mention DeepSeek by name, it comes just a week after the Chinese chatbot became the most popular AI app in the US, causing US tech stocks to plummet.

Its sudden popularity prompted concerns about security, privacy and ethics., including DeepSeek’s inability to answer questions about topics sensitive to the Chinese Communist Party.

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US President Donald Trump described the Chinese app as a “wake-up call” for the American tech industry, with the White House reportedly evaluating the impacts of DeepSeek on national security.

The United States Navy has already banned its members from using DeepSeek for either work-related tasks or personal use, while Nasa has forbidden the AI technology on government-issued devices and networks.

Several states have also signalled that they are mulling a DeepSeek ban. Texas became the first to implement a ban on government devices.

“Texas will not allow the Chinese Communist Party to infiltrate our state's critical infrastructure through data-harvesting AI and social media apps,” said Texas Governor Greg Abbott.

“Texas will continue to protect and defend our state from hostile foreign actors.”

Security experts have also warned that DeepSeek could pose an even greater threat to businesses and governments than other Chinese-owned apps like TikTok, as data is stored in servers in China.

“DeepSeek represents a clear risk for any enterprise whose leadership values data privacy, security and transparency,” said Bill Conner, chief executive of automation firm Jitterbit and former security advisor to the US government.

“As stated in their own privacy policy, DeepSeek is a shared cloud service run in China with data being stored in China – potentially introducing unknown risks to data privacy, compliance mandates and security controls.”

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