US wary of DeepSeek threat: Chinese AI firm linked to military and intelligence operations

A senior US official has warned that DeepSeek, a fast-rising Chinese artificial intelligence firm, is actively supporting China’s military and intelligence networks. The official told Reuters that the Hangzhou-based company has also attempted to obtain restricted high-end semiconductors—blocked under US export rules—by leveraging front companies in Southeast Asia.

DeepSeek gained global recognition in January when it announced that its AI reasoning models were competitive with or even superior to those from leading US firms, while offering them at a fraction of the cost. The announcement caused a stir across tech circles, positioning DeepSeek as a key player in China’s broader push to dominate the global AI race.

“We believe DeepSeek has knowingly supported and will continue to support Chinese military and intelligence functions,” the US official said, speaking on condition of anonymity. “This behavior goes beyond simply offering open access to its models—it represents deeper and more coordinated activity.”

The new assessment sheds light on growing US concern about Chinese tech firms playing dual roles—advancing commercial AI innovation while feeding data and capabilities into state surveillance and defense efforts. The official claimed DeepSeek has been sharing usage data and user metrics with Beijing’s internal security agencies, raising alarm about how the firm handles the personal information of its tens of millions of users worldwide.

Under Chinese law, companies must hand over data to the state upon request. While this legal requirement is widely known, the US claims that DeepSeek is already engaging in such practices voluntarily. If true, that would raise major red flags for international users who may not be aware their data could be flowing directly into the hands of Chinese intelligence services.

US lawmakers have also raised privacy concerns, noting that DeepSeek’s user agreement contains language suggesting data from American users may be routed through backend systems connected to China Mobile, a state-owned telecom enterprise. These suspicions have fueled bipartisan calls in Washington to investigate the company more aggressively.

According to the US official, DeepSeek has been cited in more than 150 procurement documents related to China’s People’s Liberation Army (PLA) and associated government research entities. The firm is said to have provided AI-related services to PLA-affiliated institutions—activities that the US views as reinforcing the PLA’s technological edge.

In addition, the official alleged that DeepSeek has been circumventing US chip export controls by routing orders through third-party vendors in Southeast Asia. These chips—essential for training and deploying advanced AI models—remain under strict US export limits when destined for Chinese entities with links to military or surveillance operations.

Washington’s broader concern is that China’s growing AI capabilities are being fueled by repurposed US technologies and know-how. Officials now suspect that DeepSeek’s rapid growth may be less about domestic breakthroughs and more about strategic exploitation of foreign systems and infrastructure.

As geopolitical tensions between the US and China continue to escalate—particularly around semiconductors and advanced computing—firms like DeepSeek are likely to face closer scrutiny, tighter export controls, and more intense public debate over their role in global tech ecosystems.