DeepSeek: Chinese AI firm on US national security radar

Published On Jan 29, 2025, 12:22 AM

US officials are examining the national security implications of an AI breakthrough by Chinese company DeepSeek, which has raised concerns within the US government and military. The US Navy has banned its personnel from using DeepSeek's apps due to security and ethical worries. Meanwhile, OpenAI aims to work closely with the US government to defend its technology against foreign competitors. The rise of DeepSeek's AI model has led to declines in stocks of US tech firms, prompting concerns over the competitiveness and sustainability of US investments in AI.

Stock Forecasts

QQQ

Negative

Given the heightened security concerns and the scrutiny on DeepSeek, as well as the potential retaliatory measures from US tech companies, the American tech sector could see increased investments. However, the initial panic has caused shares to fall, and while they may recover, the immediate outlook might remain negative until a clearer picture emerges regarding the competitive landscape and security implications.

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