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Elevate Magazine
January 29, 2025

U.S. Navy Bans DeepSeek AI Over Security Concerns

u.s. navy bans deepseek ai over security concerns
Photo source: FMT

The U.S. Navy has issued a directive to its personnel to avoid using DeepSeek AI, a technology developed by a Chinese company, due to potential security and ethical risks associated with its origin and application. The decision was communicated via an email sent to all members, emphasising that DeepSeek’s AI should not be utilised in any capacity.

A Navy spokesperson confirmed the authenticity of the email, stating that it aligns with the Department of the Navy’s policy on generative AI, as outlined by the chief information officer. The warning was issued shortly after DeepSeek launched its advanced R1 AI model, which competes with OpenAI’s offerings. The DeepSeek model is open source, which allows developers to integrate it into their projects, and it has quickly gained popularity, surpassing OpenAI’s ChatGPT in Apple’s App Store rankings.

DeepSeek’s rise has implications for the tech industry, particularly in terms of infrastructure costs. The company revealed that its extensive language model was developed in just two months at a cost of under $6 million, despite U.S. restrictions on chip exports to China. This development has raised concerns that future AI technologies might require less expensive infrastructure than previously anticipated, leading to a significant market reaction.

On Monday, shares of AI chip manufacturers Nvidia and Broadcom plummeted by 17%, resulting in a combined loss of $800 billion in market value and contributing to a 3.1% decline in the Nasdaq index.

The Navy’s advisory was issued days before these market fluctuations, which emphasises the importance of avoiding DeepSeek’s AI for both work-related and personal tasks. The email was part of an all-hands communication sent to the Operational Navy distribution list.

DeepSeek faced challenges on Monday, temporarily limiting user registrations due to large-scale malicious attacks on its services before resuming normal operations.

President Donald Trump, who recently took office, noted that DeepSeek’s emergence “should serve as a wake-up call” for American tech companies. Trump is currently working to keep the Chinese social media platform TikTok operational in the U.S., despite national security concerns that have led lawmakers to consider banning or selling the service. Previously, Trump supported banning TikTok but has since changed his stance.

Alexandr Wang, CEO of Scale AI, described DeepSeek’s previous AI model as “groundbreaking” and its R1 release as even more formidable, stating it is “approximately comparable to the leading American models.” Wang characterised the rivalry between the U.S. and China as an “AI war.” His company provides training data to major players like OpenAI, Google, and Meta.

Trump’s administration recently announced a collaborative venture called Stargate, involving OpenAI, Oracle, and SoftBank, which aims to invest billions in AI infrastructure in the U.S.