Taiwan Bans Government Use of DeepSeek AI Technology Over Security Concerns

Taiwan has taken a significant step by prohibiting government agencies from utilizing DeepSeek AI technology due to security apprehensions. The Ministry of Digital Affairs in Taiwan emphasized that the technology poses a threat to national information security. This decision comes following the unveiling of the R1 model by the Chinese AI lab, which stirred turmoil in the market.

Taiwan's Ban on DeepSeek

The Ministry of Digital Affairs in Taiwan released a statement on Friday, instructing public sector employees and critical infrastructure facilities to refrain from using the technology developed by the Chinese company, DeepSeek. The ministry highlighted concerns about the technology's operation involving cross-border data transmission and potential information leaks, which could jeopardize national security.

DeepSeek's R1 Model and Market Impact

DeepSeek garnered attention in January with the introduction of its flagship AI model, R1. The company claims that the R1 model possesses reasoning capabilities comparable to prominent US models like OpenAI's o1 but at a significantly lower cost. The unveiling of the R1 model caused turmoil in AI stocks, leading to a significant market disruption.

Regulatory Challenges Faced by DeepSeek

Despite its technological advancements, DeepSeek is encountering regulatory obstacles in various countries. Italy's Data Protection Authority, known as Garante, recently barred access to the DeepSeek app to safeguard the personal data of Italian users. This action was prompted by DeepSeek's inadequate response to inquiries regarding the app's data processing practices.

Similarly, the Data Protection Commission in Ireland has reached out to DeepSeek seeking clarification on the handling of Irish users' data. In the UK, AI Minister Feryal Clark cautioned British citizens about the potential risks associated with using DeepSeek, emphasizing the importance of understanding how their data would be utilized.

DeepSeek, originating as an AI project by Chinese entrepreneur Liang Wenfeng in 2023, has rapidly gained prominence but is now grappling with mounting regulatory scrutiny in several nations.

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By: msehmbi@insider.com (Milan Sehmbi)
Title: Taiwan Bans Government Use of DeepSeek AI Technology Over Security Concerns
Sourced From: www.businessinsider.com/taiwan-bans-government-agencies-ai-deepseek-security-concerns-2025-2
Published Date: Sat, 01 Feb 2025 16:19:17 +0000