In the midst of national security concerns, the Donald Trump-led government is planning to ban the Chinese AI program DeepSeek from US government devices.

The Chinese artificial intelligence (AI) chatbot smartphone software DeepSeek is expected to be banned from all US government devices by the Donald Trump administration because of national-security concerns. The Wall Street Journal said that US government officials are concerned about DeepSeek's management of user data, which the AI behemoth claims is kept on Chinese servers.

Officials from the US administration were also thinking of restricting how US-based cloud service providers might give DeepSeek's AI models to their clients and prohibiting the chatbot from app stores. The Wall Street Journal did note that the conversations were still in their infancy, though. Investors were concerned that DeepSeek's entry may challenge established players in the AI business, which led to a significant sell-off in global share markets in January due to the company's low-cost AI models.

Alibaba Group Holdings' stock, however, rose 7% earlier this week when the company unveiled a model that it said outperforms DeepSeek using a fraction of the data needed. According to Bloomberg, the leading Chinese e-commerce giant launched its QwQ-32B model in 2025, outperforming the previous version while using only 5% of the parameters of DeepSeek's R1 model, making it a major participant in China's AI market.

Liang Wenfeng, who also leads the Chinese quant hedge fund High-Flyer, created DeepSeek in 2023. The business became well-known after benchmarks revealed that their V3 big language model, which was built at a far cheaper cost, performed better than that of numerous well-known US computer companies. In several benchmarks, DeepSeek's R1 language model, which simulates certain features of human thinking, both equaled and surpassed OpenAI's most recent O1 model.