OpenAI Labels DeepSeek as ‘State-Controlled,’ Calls for Ban on PRC AI Models

OpenAI has raised alarms over Chinese AI lab DeepSeek, labeling it as “state-subsidized” and “state-controlled” in a recent policy proposal. The AI giant is urging the U.S. government to consider banning DeepSeek’s models and similar artificial intelligence operations supported by the People’s Republic of China (PRC), citing security and privacy concerns.

The proposal, submitted for the Trump administration’s AI Action Plan, warns that AI models developed under Chinese jurisdiction are susceptible to government interference due to China’s strict data compliance laws. OpenAI argues that such models pose risks, including privacy breaches and potential intellectual property theft, making them a threat to global AI security.

READ ALSO: Spain to impose massive fines for not labelling AI-generated content

As part of its recommendations, OpenAI advocates for a ban on “PRC-produced” models in countries classified as “Tier 1” under the Biden administration’s export control guidelines. This move would limit Chinese AI influence in key U.S.-aligned markets, intensifying the ongoing technology rivalry between the U.S. and China.

READ ALSO: AI Is Coming for You- The Double-Edged Sword of Artificial Intelligence

Although the extent of DeepSeek’s ties to the Chinese government remains unclear, recent scrutiny has increased following a reported meeting between DeepSeek’s founder and Chinese President Xi Jinping. This has fueled speculation about Beijing’s strategic role in shaping AI development through state-backed institutions.

ALSO: E. Wells Realty Recognized Among the Top 100 Emerging Global Businesses of 2025!

As AI continues to be a battleground for global tech supremacy, OpenAI’s stance signals a growing push to curb China’s influence in the field. The debate over AI regulation and national security is expected to intensify as governments worldwide grapple with the implications of AI dominance.