An unnamed US official has accused Chinese AI start-up DeepSeek of aiding China's military and intelligence operations.
DeepSeek allegedly used Southeast Asian shell companies to access high-end semiconductors prohibited for shipment to China under US export regulations.
DeepSeek gained attention for open-source AI models rivaling US counterparts but faced privacy concerns over data collection practices.
Issues arose when Feroot Security discovered code enabling data transmission to China Mobile servers.
Regulators in South Korea suspended DeepSeek from app stores due to privacy concerns, with subsequent warnings in South Korea and Italy regarding user data transfers without consent.
DeepSeek faced scrutiny as it began hiring interns to process medical data, prompting investigations into false information dangers by Italy's consumer rights regulator.
Several countries, including South Korea, Italy, Taiwan, Australia, India, and the US, have banned DeepSeek on government devices over national security worries.
Additional countries, such as the UK, Belgium, France, Ireland, and the Netherlands, are reportedly investigating DeepSeek's national security implications.
The US official alleged DeepSeek circumvented export controls to access Nvidia chips, including the H100 chip covered by US restrictions since 2022.
DeepSeek is accused of providing support beyond open-source access to its AI models for China's military and intelligence activities.
Allegations include using shell companies and Southeast Asia data centers to access advanced Nvidia chips in circumvention of US export restrictions.