In a newly released policy recommendation, OpenAI has labeled the Chinese AI research lab DeepSeek as a “state-funded” and “state-controlled” entity, advocating for a potential ban on AI models developed by the organization. OpenAI suggests that the U.S. government should take measures to restrict access to DeepSeek’s models and other artificial intelligence systems backed by the People’s Republic of China (PRC).
The recommendation, which is part of OpenAI’s submission for the Trump administration’s “AI Action Plan” initiative, argues that DeepSeek’s models—particularly the R1 “reasoning” model—pose security threats due to Chinese legal requirements mandating compliance with government requests for user data. According to OpenAI, prohibiting the usage of “PRC-produced” models in nations classified as “Tier 1” under the Biden administration’s export control framework would mitigate privacy vulnerabilities and reduce the “risk of intellectual property theft.”
However, OpenAI’s use of the term “models” remains ambiguous—whether it refers exclusively to DeepSeek’s API, its open-source AI models, or both. Notably, DeepSeek’s open models lack built-in mechanisms that would allow the Chinese government to extract user data. Major tech firms such as Microsoft, Perplexity, and Amazon have hosted these models on their infrastructure.
Previously, OpenAI accused DeepSeek—an AI lab that emerged as a key player earlier this year—of “distilling” knowledge from OpenAI’s proprietary models in violation of its terms of service. The latest allegations, however, mark an escalation in OpenAI’s stance, as it now explicitly asserts that DeepSeek operates under PRC influence and direction.
Despite OpenAI’s claims, there is no definitive evidence directly linking DeepSeek to the Chinese government. The organization originated as a spin-off from High-Flyer, a quantitative hedge fund. Nevertheless, recent developments indicate growing Chinese governmental interest in DeepSeek. Just weeks ago, DeepSeek’s founder, Liang Wenfeng, reportedly met with Chinese President Xi Jinping, further fueling speculation about the lab’s ties to state authorities.
