Taiwan's MODA bans DeepSeek use in public sector over national security issues

Taiwan’s Ministry of Digital Affairs (MODA) has barred public sector workers from using DeepSeek, a Chinese artificial intelligence app which shot to fame, citing data security concerns.  

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DeepSeek is a startup from China founded by hedge fund manager Liang Wenfeng in 2023 in Hangzhou, China, known for hosting Alibaba (BABA) and several other prominent tech giants. 

The company recently introduced its latest R1 AI model, claiming performance comparable to OpenAI's ChatGPT. Notably, its V3 base model, unveiled in December last year, was reportedly created in just two months for less than US$6 million. 

According to a statement on its website, the MODA warned public sector employees to restrict the use of DeepSeek AI products due to national information security concerns. 

The authority stated that DeepSeek is a Chinese product and its operation involves cross-border transmission and information leakage and other information security concerns. “It is a product that endangers national information security.” 

The authority’s ban covers staff of government agencies, public schools, state-owned enterprises, semi-official organisations, critical infrastructure projects, and government-endowed foundations. However, details on enforcement have not been revealed.  

The MODA also stated that in accordance with ‘Principles on Restricting the Use of Products That Endanger National Cyber Security’, a 2019 Executive Yuan regulation does not allow government agencies to use IT and communication technology products or services that could potentially lead to a national security risk. 

Taiwan’s ban on DeepSeek comes amid growing global concerns about how the Chinese AI app collects and handles personal data. South Korea’s Personal Information Protection Commission plans to send a written request to DeepSeek seeking clarification on how user data is managed, Reuters reported. Meanwhile, authorities in France, Italy, Ireland, and other countries are also investigating DeepSeek’s handling of personal data. 

DeepSeek has recently gained attention in the AI industry, with its free AI assistant model surpassing U.S. rival ChatGPT in app store downloads. The company’s claim that it matches the capabilities of leading U.S. AI models for a fraction of the investment has also stirred interest among global investors. 

Taiwan's ban on DeepSeek comes amid global concerns regarding the manner in which the platform acquires and manages personal information. According to Reuters, the Personal Information Protection Commission of South Korea intends to issue a formal inquiry to DeepSeek to elucidate how user data is overseen.  

On a similar note, authorities in France, Italy, Ireland, and other regions are conducting inquiries into DeepSeek's procedures for managing personal data. DeepSeek has recently garnered substantial acclaim within the AI sector, as its complimentary AI assistant model has outperformed its American counterpart, ChatGPT, in terms of downloads from app stores.  

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