Key Takeaways
- U.S. lawmakers have claimed DeepSeek is secretly feeding user data to China and pushing CCP propaganda through its AI chatbot.
- DeepSeek allegedly built its model using stolen U.S. AI tech, with testimonies from OpenAI.
- With claimed state ties, DeepSeek has been labeled as a “threat to security” by lawmakers.
A recent report by the U.S. House Select Committee has accused DeepSeek of engaging in espionage on behalf of the Chinese Communist Party (CCP).
According to the report, DeepSeek has been manipulating AI-generated outputs to promote Chinese propaganda while collecting data from American users.
Nvidia has also come under fire. Despite U.S. sanctions aimed at limiting the sale of advanced chips to China, the report alleges DeepSeek has access to at least 60,000 of its high-performance chips.
DeepSeek Accused
The report found that DeepSeek “represents a profound threat to our nation’s security.”
The AI chatbot, launched in January caused turbulence in global markets and led to a drop in U.S. tech stocks as investors reconsidered their faith in American AI firms.
Despite presenting as a typical chatbot, the Committee claims DeepSeek “siphons data back to the People’s Republic of China” and poses “significant security vulnerabilities to users.”
The company’s founder, Liang Wenfeng, is also accused of running DeepSeek within an “integrated ecosystem” linked to state-backed hardware manufacturers and the strategically important Zhejiang Lab.
Described by China’s Ministry of Science and Technology as the “core soul” of national scientific and technological development, Zhejiang Lab is believed to have close ties to the CCP.
OpenAI Allegations
The report also includes testimonies from OpenAI, which began investigating DeepSeek in January to determine whether the company had misused its proprietary models.
OpenAI told U.S. lawmakers: “DeepSeek employees circumvented guardrails in OpenAI’s models… to accelerate the development of advanced reasoning capabilities at a lower cost.”
In March, OpenAI urged the U.S. government to ban DeepSeek, describing the company as “state-subsidized” and “state-controlled.”
Manipulated Responses
The report further alleges that approximately 85% of DeepSeek’s model outputs were deliberately manipulated to suppress content related to sensitive topics such as human rights, Hong Kong, Taiwan, and democracy.
“This is not an accident—it is a calculated effort to expand the PRC’s control over global information,” the report states.
According to the Committee, DeepSeek acts as a “digital enforcer of the CCP,” in contrast to American AI firms, which aim to implement safeguards against genuinely harmful content.
The report claims DeepSeek’s models do more than echo official narratives—they actively erase dissent and promote only Party-approved viewpoints.
Nvidia Facing Scrutiny
The report also raises concerns about how DeepSeek acquired the computing power necessary for its AI development.
Despite U.S. sanctions to limit the sale of advanced chips to China, DeepSeek allegedly has access to at least 60,000 high-performance Nvidia chips, including A100 and H20 models.
The Committee claims these chips were manufactured in ways that allowed them to bypass U.S. export controls and enter the Chinese market through indirect channels.
Lawmakers have written to Nvidia requesting detailed information about its sales to China and Southeast Asia.
In the letter, Rep. John Moolenaar called DeepSeek a “weapon in the Chinese Communist Party’s arsenal, designed to spy on Americans, steal our technology, and subvert U.S. law.”
In response, Nvidia said in a statement to Business Insider: “The U.S. government instructs American businesses on what they can sell and where—we follow the government’s directions to the letter.”
“The associated products are shipped to other locations, including the United States and Taiwan, not to China,” the company added.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
