A senior US State Department official has accused Chinese artificial intelligence firm DeepSeek of supporting China’s military and intelligence operations, a report has said, adding that the official also said that the company also used shell companies in Southeast Asia in an attempt to unlawfully acquire high-end US semiconductors.The allegations, shared with news agency Reuters on the condition of anonymity, represent the US government’s first formal assessment of DeepSeek’s ties to Beijing and its activities. The official stated that DeepSeek has “willingly provided and will likely continue to provide support to China’s military and intelligence operations,” a claim that goes “above and beyond open-source access” to its models.This news comes after the Hangzhou-based DeepSeek gained global attention in January by claiming its AI models could match or surpass those from US industry leaders at a significantly lower cost.
‘DeepSeek sharing user data with Chinese government’
According to the official, the US government believes DeepSeek is sharing user statistics and information with Beijing’s state surveillance apparatus, a concern amplified by Chinese laws that compel companies to share data upon request. Furthermore, the official cited over 150 references to DeepSeek in procurement records for China’s People’s Liberation Army (PLA) and affiliated entities, alleging the company provided technology services to PLA research institutions. Reuters could not independently verify this data.
DeepSeek trying to ‘evade’ US ban on chips: US official
The report also claims that the US official also detailed DeepSeek’s efforts to circumvent American export controls on advanced AI chips, specifically Nvidia‘s H100s. “DeepSeek sought to use shell companies in Southeast Asia to evade export controls, and DeepSeek is seeking to access data centers in Southeast Asia to remotely access U.S. chips,” the official was quoted as saying.Meanwhile, Nvidia said it does not support parties that violate US export controls and noted that with current restrictions, it is “effectively out of the China data center market.” An Nvidia spokesman also stated their review indicated DeepSeek used “lawfully acquired H800 products, not H100,” a less powerful chip designed to comply with US export rules.