DeepSeek may have taken the AI and tech industries by storm, but US lawmakers are growing increasingly concerned, with the latest report calling it “a weapon in the Chinese Communist Party’s arsenal.”

DeepSeek shocked the world with an AI model that rivaled the very best industry leaders had to offer, all while being built using third-rate hardware and at a fraction of the cost. Companies large and small raced to adopt DeepSeek, but US lawmakers and officials have been increasingly worried about the privacy and security implications of the Chinese AI.

In a newly released investigative report, Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi, of the House Select Committee on China, sound the alarm on DeepSeek and warn users of the danger the AI poses.

The report’s key findings include:

• Censorship by Design: More than 85% of DeepSeek’s responses are manipulated to suppress content related to democracy, Taiwan, Hong Kong, and human rights—without disclosure to users.
• Foreign Control: DeepSeek is owned and operated by a CCP-linked company led by Lian Wenfang and ideologically aligned with Xi Jinping Thought.
• U.S. User Data at Risk: The platform funnels American user data through unsecured networks to China, serving as a high-value open-source intelligence asset for the CCP.
• Surveillance Network Ties: DeepSeek’s infrastructure is linked to Chinese state-affiliated firms including ByteDance, Baidu, Tencent, and China Mobile—entities known for censorship, surveillance, and data harvesting.
• Illicit Chip Procurement: DeepSeek was reportedly developed using over 60,000 Nvidia chips, which may have been obtained in circumvention of U.S. export controls.
• Corporate Complicity: Public records show Nvidia CEO Jensen Huang directed the company to design a modified chip specifically to exploit regulatory loopholes after October 2023 restrictions. The Trump Administration is working to close this loophole.

“This report makes it clear: DeepSeek isn’t just another AI app — it’s a weapon in the Chinese Communist Party’s arsenal, designed to spy on Americans, steal our technology, and subvert U.S. law,” said Chairman Moolenaar. “We now know this tool exploited U.S. AI models and reportedly used advanced Nvidia chips that should never have ended up in CCP hands. That’s why we’re sending a letter to Nvidia to demand answers. American innovation should never be the engine of our adversaries’ ambitions.”

Scrutiny on Nvidia

The reports puts an uncomfortable spotlight on Nvidia, the current darling of the AI industry. While Nvidia may not be an AI firm in its own right, its hardware powers AI models for virtually all the major players.

Nvidia has increasingly found itself in a difficult position as the trade war between the US and China heats up. Chinese firms are determined to gain access to Nvidia’s chips and US lawmakers are equally determined to prevent that from happening in the interests of keeping China from gaining an advantage in the AI wars.

If the lawmakers’ report is accurate, and Nvidia knowingly created chips to exploit loopholes and circumvent US export controls, the company could find itself incurring the wrath of the Trump administration.

The entire situation underscores the high stakes involved in the AI industry, and what companies—and countries—are doing to gain and maintain a competitive advantage.