House reps unveil bill banning DeepSeek from US government devices over alleged ties to Chinese government

Published On Feb 6, 2025, 11:40 AM

House lawmakers have introduced the "No DeepSeek on Government Devices Act" to ban the Chinese AI application DeepSeek from US government devices due to its alleged ties to the Chinese Communist Party and concerns over national security. Research reportedly indicates that DeepSeek can share user data with China Mobile, a state-owned telecommunications company, heightening fears over sensitive data potentially falling into the hands of the Chinese government. Lawmakers argue that this poses a significant threat not only to government data but also to personal information shared by users of the app.

Stock Forecasts

SOXX

Negative

The proposed ban on DeepSeek could indicate broader regulatory scrutiny on Chinese technology firms and AI applications seen as security risks. This heightened regulatory environment may negatively impact companies involved in AI or those closely associated with Chinese technology.

VGT

Positive

The move to ban DeepSeek could enhance the market appeal of US-based tech firms that compete in AI development, suggesting potential gains for domestically focused tech companies or ETFs.

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