US Warns Allies of Alleged AI Data Theft by DeepSeek, Chinese Firms

The United States State Department has issued a global advisory warning allied governments and partner institutions about what it describes as systematic artificial intelligence data theft by Chinese technology firms, including DeepSeek. The warning, distributed through diplomatic channels, urges foreign governments, businesses, and institutions to exercise heightened caution when engaging with these platforms.

DeepSeek, the Chinese AI company that attracted global attention earlier this year for releasing a competitive large language model at low cost, is now at the centre of a US-led effort to frame Chinese AI development as a national security risk. Washington's concerns centre on alleged data harvesting, intellectual property theft, and the potential for sensitive information processed through these systems to be accessed by Chinese state actors.

The advisory represents a significant escalation in the US-China technology rivalry, extending the battlefield from semiconductors and hardware controls to the software and AI model layer. By directing the warning globally rather than domestically, the State Department is explicitly seeking to build an international coalition of concern around Chinese AI platforms.

For countries like Pakistan, which have been expanding digital infrastructure and exploring AI adoption across public and private sectors, the advisory presents a complex policy question: how to weigh access to low-cost, capable AI tools against the security warnings of a major strategic partner. The timing, amid already elevated US-China tensions on trade and technology, ensures the advisory will land with considerable geopolitical weight.

Beijing is expected to reject the characterisation, as it has in previous instances where Washington has sought to restrict the global footprint of Chinese technology companies.