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Security concerns surrounding Chinese tech company DeepSeek have prompted Texas Attorney General Ken Paxton to launch an investigation into the artificial intelligence platform’s privacy practices.
The investigation primarily focuses on DeepSeek’s connection to the Chinese Communist Party, which maintains authority to demand data sharing from companies operating within China.
Paxton has not only informed DeepSeek about their violation of the Texas Data Privacy and Security Act but has also requested documentation from Google and Apple regarding DeepSeek’s chatbot application.
Attorney General Ken Paxton has announced an investigation into DeepSeek—a Chinese AI company with ties to the Chinese Communist Party—regarding the privacy practices of its AI platform and its claims that its AI model rivals the most advances AI models in the world, including… pic.twitter.com/5tf1rXqzfS
— Texas Attorney General (@TXAG) February 14, 2025
“DeepSeek appears to be no more than a proxy for the CCP to undermine American AI dominance and steal the data of our citizens,” Paxton said in a statement. “That’s why I’m announcing a thorough investigation and calling on Google and Apple to cooperate immediately by providing all relevant documents related to the DeepSeek app.
“The United States and Texas will continue to be at the forefront of global AI innovation, and any CCP-aligned company that tries to undermine that dominance by violating the rights of Texans and illegally undercutting American technology companies will face the full force of the law.”
The investigation follows DeepSeek’s recent introduction of an AI chatbot that claimed to match leading software capabilities at substantially lower costs.
In response to these concerns, Texas Governor Greg Abbott implemented restrictions preventing state employees from utilizing DeepSeek and other Chinese technology on government devices. Similar measures have been adopted by Virginia and New York, according to The Hill.
Attorney General Ken Paxton has launched an investigation into DeepSeek, a Chinese AI company linked to the CCP, for violating Texas privacy laws. The probe questions DeepSeek's claims of rivaling top AI models like OpenAI's o1 and its handling of user data. Paxton has notified… pic.twitter.com/CDpcDDFfZU
— Aric Brocker (@AricBrocker) February 17, 2025
However, former President Donald Trump recently expressed a different view, suggesting to reporters that DeepSeek poses no national security threat and could potentially benefit U.S. interests through its AI innovations.
Meanwhile, a bipartisan initiative in Congress seeks to implement federal restrictions similar to those already in place for TikTok. Representatives Josh Gottheimer (D-N.J.) and Darin LaHood (R-Ill.) have introduced legislation to prohibit federal employees from using DeepSeek’s AI application on government devices, citing surveillance and misinformation risks associated with Chinese government access.
The launch of DeepSeek’s chatbot had immediate market implications, contributing to a significant $1 trillion decline in U.S. technology stock market value on January 27, as investors reacted to potential market disruption from the advanced AI system.