In a bold new policy proposal, OpenAI has described Chinese AI company DeepSeek as “state-subsidised” and “state-controlled,” urging the U.S. government to consider banning its AI models. The proposal also calls for restrictions on all artificial intelligence models developed by organisations backed by the People’s Republic of China (PRC).
OpenAI raises security concerns over DeepSeek models
The policy recommendation was submitted as part of the Trump Administration’s “AI Action Plan” initiative. OpenAI argues that DeepSeek’s models, including its R1 “reasoning” model, pose security risks because Chinese laws require companies to share user data upon government request. OpenAI suggests that banning AI models produced in the PRC from being used in countries classified as “Tier 1” under the Biden Administration’s export rules would help prevent privacy breaches, intellectual property theft, and other security threats.
However, OpenAI has not clarified whether its concerns apply to DeepSeek’s AI application programming interface (API), open-source models, or both. DeepSeek’s open models are widely used and do not contain built-in mechanisms that could allow the Chinese government to access user data. Major tech companies such as Microsoft, Perplexity, and Amazon have already integrated DeepSeek’s models into their platforms, raising questions about the practicality of a potential ban.
Accusations of rule-breaking and government ties
OpenAI has previously accused DeepSeek of “distilling” knowledge from its own models, which it claims violates its terms of service. These accusations, however, have not stopped DeepSeek from gaining traction in the AI industry. The latest claims—that DeepSeek is both funded and controlled by the Chinese government—mark a significant escalation in OpenAI’s efforts to limit the company’s influence.
Despite OpenAI’s allegations, no clear evidence linking DeepSeek directly to the Chinese government exists. The company was originally a spin-off from High-Flyer, a quantitative hedge fund. However, the Chinese government’s interest in DeepSeek appears to have grown in recent months. DeepSeek’s founder, Liang Wenfeng, recently met with Chinese President Xi Jinping, fueling speculations about the company’s political ties.
Growing tensions in global AI competition
The policy proposal from OpenAI highlights the increasing tension between the U.S. and China in the AI sector. Both countries view artificial intelligence as critical for technological advancement and national security. OpenAI’s call for a ban on PRC-produced models aligns with broader concerns in Washington over China’s influence in the AI industry and potential cybersecurity risks.
As global competition in artificial intelligence intensifies, restrictions on AI models and access to key technologies will likely become a focal point of policy debates. Whether the U.S. government will act on OpenAI’s recommendations remains to be seen, but the move signals a growing push to limit China’s presence in the AI landscape.
