In a bold move that escalates the ongoing AI power struggle, OpenAI has labeled DeepSeek, a Chinese AI research lab, as “state-controlled” and is urging the U.S. government to ban AI models produced in the People’s Republic of China (PRC). The call for action comes from OpenAI’s policy submission to the Trump administration’s “AI Action Plan,” raising concerns over data security, intellectual property risks, and foreign influence in AI development.
Is DeepSeek a Security Threat or Just a Competitor?
According to OpenAI’s proposal, DeepSeek poses risks to users and businesses globally because it is a PRC-backed company with legal obligations to share data with the Chinese government. Under the Biden administration’s export restrictions, the report suggests outlawing all “PRC-produced” AI models in nations classified as “Tier 1.”
However, OpenAI’s aggressive stance has drawn skepticism. Critics question whether this is a genuine security concern or a tactical move to stifle competition. DeepSeek’s AI models, including its R1 “reasoning” model, are already in use by tech giants like Microsoft, Amazon, and Perplexity, who host these models on their own infrastructure—outside of China’s control.
As per Tech Crunch, Despite OpenAI’s claims, there is no clear evidence linking DeepSeek directly to the Chinese government. The company emerged from High-Flyer, a quantitative hedge fund, rather than a state-backed research body. However, Beijing’s growing interest in DeepSeek—including a recent meeting between DeepSeek founder Liang Wenfeng and President Xi Jinping—has raised eyebrows in Washington.
AI’s Role in U.S.-China Tech Tensions
The push for an AI model ban comes amid rising U.S.-China tensions in the tech sector. Washington has already imposed harsh restrictions on AI chip exports to China, and now OpenAI is advocating for an even broader policy that targets Chinese-developed AI models directly.
This could lead to a further divide in global AI research, creating two competing AI ecosystems: one led by the U.S. and its allies, and another driven by China and other nations outside Western influence.
Industry Backlash: Innovation or Protectionism?
OpenAI’s proposal has sparked intense debate. Some experts warn that Chinese AI companies, if left unchecked, could pose real national security risks, given China’s strict data laws. Others, however, argue that OpenAI is weaponizing policy to eliminate competition, rather than focusing on out-innovating rivals.
Online reactions have been mixed. A TechCrunch commenter noted, “If DeepSeek’s models are hosted by Microsoft and AWS, where exactly is the security risk?” Another user remarked, “OpenAI wants to charge $20,000 per month for its API, while DeepSeek is offering an open model for free. That’s the real reason behind this.”
What’s Next?
With OpenAI making one of its most direct policy interventions to date, all eyes are now on U.S. lawmakers. If the proposal gains traction, it could set a global precedent for AI regulation and protectionism.
Meanwhile, DeepSeek remains undeterred. The company continues to release highly capable AI models, challenging OpenAI’s dominance and fueling the debate over whether AI should be treated as a national security asset or an open scientific pursuit.
Also Read: Indian AI: Shaping Its Future in the Era of ChatGPT and Deep Seek
