In a new policy proposal, OpenAI describes Chinese AI lab DeepSeek as โstate-subsidizedโ and โstate-controlled,โ and recommends that the U.S. government consider banning models from the outfit and similar Peopleโs Republic of China (PRC)-supported operations.
The proposal, a submissionย for the Trump Administrationโs โAI Action Planโ initiative, claims that DeepSeekโs models, including its R1 โreasoningโ model, are insecure because DeepSeek faces requirements under Chinese law to comply with demands for user data. Banning the use of โPRC-producedโ models in all countries considered โTier 1โ under the Biden Administrationโs export rules would prevent privacy and โsecurity risks,โ OpenAI says, including the โrisk of IP theft.โ
Itโs unclear whether OpenAIโs references to โmodelsโ are meant to refer to DeepSeekโs API, the labโs open models, or both. DeepSeekโs open models donโt contain mechanisms that would allow the Chinese government to siphon user data; companies including Microsoft, Perplexity, and Amazon host them on their infrastructure.
OpenAI has previously accused DeepSeek, which rose to prominence earlier this year, of โdistillingโ knowledge from OpenAIโs models against its terms of service. But OpenAIโs new allegations โ that DeepSeek is supported by the PRC and under its command โ are an escalation of the companyโs campaign against the Chinese lab.
There isnโt a clear link between the Chinese government and DeepSeek, a spin-off from a quantitative hedge fund called High-Flyer. However, the PRC has taken an increased interest in DeepSeek in recent months. Several weeks ago, DeepSeek founder Liang Wenfeng met with Chinese leader Xi Jinping.


