US Navy bans use of China's DeepSeek AI over 'security and ethical concerns'

The US Navy has instructed its personnel not to use AI technology from China's DeepSeek due to "security and ethical concerns."

An email sent to Navy members on Friday warned that DeepSeek's AI should not be used "in any capacity" because of "potential security and ethical concerns associated with the model's origin and usage," according to a CNBC report.

A US Navy spokesperson confirmed the email's authenticity to the broadcaster, saying it is consistent with the policy on generative AI set by the Department of the Navy's Chief Information Officer.

The warning emphasized that DeepSeek's AI should not be used for "any work-related tasks or personal use." It was distributed to all personnel on the Operational Navy distribution list, underscoring the importance of the directive.

This decision follows DeepSeek's release of its R1 AI model, which competes with OpenAI's technology.

The open-source model has quickly gained traction, even surpassing OpenAI's ChatGPT in the Apple App Store.

Despite limited resources, DeepSeek's model used only 2,000 older chips and a budget under $6 million, in stark contrast to OpenAI, which reportedly spent over $100 million on its advanced ChatGPT model, the o1.

The rise of DeepSeek's AI has caused market turbulence, with shares of AI chipmakers Nvidia and Broadcom dropping 17%, wiping out $800 billion in market value.

Venture capitalist David Sacks commented on X that DeepSeek's R1 "shows that the AI race will be very competitive," urging the US to stay vigilant.

Alexandr Wang, CEO of Scale AI, described DeepSeek's R1 as "earth-shattering" and on par with the best American models, calling the US-China AI race an “AI war.”

In response to these developments, Trump's administration recently announced a joint venture, Stargate, between OpenAI, Oracle, and SoftBank to invest billions in AI infrastructure in the US.

Trump also stated that DeepSeek has been “a wake-up call” for Silicon Valley, urging American firms to focus on competition.

OpenAI CEO Sam Altman remarked on X that DeepSeek is an “impressive model, particularly around what they're able to deliver for the price,” adding, “We will obviously deliver much better models and also it's legit invigorating to have a new competitor.”