Chinese AI startup DeepSeek has rocked the tech world, shaking stock markets and leading to billions of dollars in market capitalisation losses for companies like Nvidia. It has prompted prominent figures, including Sam Altman, to acknowledge its impact. So far, there have been multiple developments both in favour of and against DeepSeek, including an alleged claim by Microsoft and OpenAI that DeepSeek members may have illegally obtained data to help build its AI models. Now, amidst the scrutiny and national security concerns across the U.S., the U.S. Navy has instructed all of its members not to use DeepSeek AI services, as the technology inherently belongs to China, according to a report by CNBC.
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What U.S. Navy Said About DeepSeek And Why Is The West Worried
As per a new CNBC report, an email from the U.S. Navy stated that DeepSeek AI should not be used in any capacity due to potential security and ethical concerns associated with its origin in China. This email has since been confirmed as authentic by the U.S. Navy.
The email reportedly mentioned that DeepSeek shouldn’t be used “for any work-related tasks or personal use.” Moreover, the recipients of the same were told to “refrain from downloading, installing, or using the DeepSeek model in any capacity.”
DeepSeek is a direct competitor to ChatGPT and Google Gemini. Despite reportedly costing only $5–6 million to develop, DeepSeek’s AI models are seen as a direct challenge to OpenAI’s ChatGPT, Google Gemini, and other leading AI models.
The key narrative here is that while the West had to invest billions of dollars to develop generative AI, China managed to achieve similar results at a fraction of the cost. This has unsettled stock markets in the U.S., particularly affecting companies like Nvidia.
Since its release, DeepSeek has risen to the top of Apple’s App Store, surpassing even ChatGPT in downloads.
U.S. President Donald Trump Says DeepSeek Is A ‘Wake-Up’ Call
Concerns about DeepSeek are not limited to the U.S. Navy. Now, the U.S. President Donald Trump has also expressed worries about the AI startup. As reported by NBC News, Trump said “The release of DeepSeek AI from a Chinese company should be a wake-up call for our industries that we need to be laser focused on competing.”
He added, overall, DeepSeek is a positive development when it comes to AI at large, and this is because “instead of spending billions and billions, you’ll spend less, and you’ll come up with, hopefully, the same solution.”
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