DeepSeek seen as adversarial AI that poses destabilizing threat to global data security

The recent emergence of China’s DeepSeek AI has sent ripples across the global technology landscape, igniting a fierce debate over artificial intelligence’s future trajectory and its implications for geopolitical stability. In what has been described as an “AI Sputnik moment” for the United States, DeepSeek has demonstrated that China is not only catching up but potentially surpassing Western AI capabilities in critical areas.

The unveiling of DeepSeek’s advanced models at a fraction of the cost incurred by U.S. firms has triggered alarm bells across the tech industry, Wall Street, and national security agencies. The implications stretch far beyond commercial competition, touching on issues of cybersecurity, intellectual property theft, data privacy, and the global balance of power in technological innovation.

DeepSeek has managed to shake the AI industry by achieving performance parity with Western models while operating under significantly lower computational and financial constraints. This accomplishment has not only challenged the presumed superiority of U.S. tech firms but has also led to an immediate political reaction in Washington. Legislative efforts, such as Senator Josh Hawley’s Decoupling America’s Artificial Intelligence Capabilities from China Act, aim to prohibit U.S. firms from collaborating with Chinese AI researchers, restrict the flow of AI-related intellectual property, and impose sanctions on Chinese tech investments.

“Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States,” Hawley said. “America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidization of CCP innovation.”

Wall Street’s response was equally dramatic. Following DeepSeek’s announcement, NVIDIA’s stock plummeted, shedding $593 billion in market value in a single day. This reaction underscores investor fears that U.S. dominance in AI hardware and software may be under serious threat, particularly if China has discovered novel ways to achieve efficiency without reliance on American-designed chips. Washington’s efforts to curb China’s access to AI hardware, including export restrictions on NVIDIA chips, now appear to be too little, too late.

While DeepSeek’s rapid advancements highlight China’s growing technological prowess, they also raise serious concerns regarding cybersecurity and espionage. Unlike conventional cyber threats, AI-driven systems like DeepSeek have the potential to automate and accelerate cyberattacks with unprecedented efficiency. Security experts warn that DeepSeek could be leveraged by Chinese intelligence services to conduct large-scale espionage, exploit zero-day vulnerabilities, and enhance China’s cyber warfare capabilities.

One of the most alarming capabilities attributed to DeepSeek is its ability to conduct advanced persistent threats. These long-term cyber-espionage campaigns could allow Chinese state actors to infiltrate critical infrastructure, financial systems, and government networks. DeepSeek’s ability to analyze massive datasets in real-time enhances its potential for detecting vulnerabilities in software and network architectures, thereby making it a formidable weapon in cyber warfare.

DeepSeek’s development has also reignited concerns over China’s history of industrial and technological espionage. Over the past decade, numerous high-profile cases have highlighted Chinese efforts to steal intellectual property related to AI and other emerging technologies. This includes incidents where Chinese engineers attempted to smuggle proprietary data from leading U.S. firms such as Apple, Google, and NVIDIA. If DeepSeek’s success is indeed built on appropriated technology, as some investigations suggest, it would represent yet another case of China leveraging stolen innovations to leapfrog technological development.

Indeed. On Tuesday, a federal grand jury returned a superseding indictment charging Linwei Ding, a former Google software engineer, with seven counts of economic espionage and seven counts of theft of trade secrets in connection with an alleged plan to steal from Google proprietary information related to AI technology. Ding was originally indicted in March 2024 on four counts of theft of trade secrets. According to the U.S. Department of Justice (DOJ). “Between approximately May 2022 and May 2023, Ding uploaded more than 1,000 unique files containing Google confidential information from Google’s network to his personal Google Cloud account, including the trade secrets alleged in the superseding indictment,” DOJ said.

“While Ding was employed by Google, he secretly affiliated himself with two People’s Republic of China (PRC)-based technology companies,” according to DOJ. “Around June 2022, Ding was in discussions to be the chief technology officer for an early-stage technology company based in the PRC. By May 2023, Ding had founded his own technology company focused on AI and machine learning in the PRC and was acting as the company’s CEO.”

In addition to its cybersecurity implications, DeepSeek’s data collection practices pose significant privacy concerns. Investigations have revealed that the model potentially transmits user data to China Mobile, a state-controlled telecom company banned in the U.S. due to national security risks. The possibility of DeepSeek storing sensitive user information on Chinese servers raises red flags, particularly given China’s extensive surveillance state and history of compelling private firms to cooperate with intelligence operations.

Australia has already responded to these concerns by banning DeepSeek from all government devices and networks. The Australian government cited the AI model’s unacceptable risks to national security, with similar concerns emerging in the U.S., Taiwan, and several European countries. Given DeepSeek’s capacity to correlate disparate datasets, experts fear that it could be used to de-anonymize individuals, track political dissidents, or even conduct large-scale social engineering campaigns.

Beyond its commercial and security ramifications, DeepSeek represents a shift in how AI is used as a geopolitical instrument. China has long viewed AI as a cornerstone of its strategic ambitions, as outlined in its Next Generation Artificial Intelligence Development Plan. By mastering AI, China seeks to reduce its reliance on Western technology, counter U.S. technological sanctions, and assert itself as a global leader in artificial intelligence.

China’s AI ambitions have been accelerated by government subsidies, state-backed research initiatives, and access to vast domestic datasets. Unlike Western nations, where data privacy laws restrict AI training on sensitive information, China’s government can leverage extensive citizen data without significant legal barriers. This unrestricted access to training data has given Chinese firms like DeepSeek a competitive edge in refining AI models that excel in real-world applications, including cybersecurity, finance, and autonomous systems.

The United States now faces a strategic dilemma. While export controls and sanctions have been effective in slowing China’s access to high-end semiconductor technology, DeepSeek’s success suggests that China is finding ways to work around these restrictions. The question now is whether the U.S. should double down on containment strategies or shift toward policies that emphasize domestic AI innovation, talent retention, and strengthening partnerships with allies in AI development.

The unfolding AI race between the U.S. and China is no longer confined to economic competition; it has become a critical component of national security and global technological hegemony. Critics and national security experts say Washington must now consider several key measures to maintain its leadership in AI, including strengthening AI talent pipelines; bolstering AI cybersecurity; enhancing international collaboration; and adapting export controls.

The rise of DeepSeek is a stark reminder that AI competition is no longer just about technological innovation – it is a race with profound implications for national security, economic stability, and global power dynamics. As China pushes forward with its AI ambitions, the U.S. and its allies must act decisively to safeguard their technological advantages while addressing the risks posed by adversarial AI models. Whether through policy reforms, strategic investments, or international cooperation, the response to DeepSeek’s emergence will shape the future of AI development and geopolitical strategy in the coming decades.

Article Topics

AI  |  Australia  |  China  |  cybersecurity  |  data collection  |  data privacy  |  DeepSeek  |  national security  |  regulation  |  United States