DeepSeek gets 'National Treasure in China' status: Travel ban, passport taken away and more that it means for DeepSeek's top engineers

DeepSeek, the China-based AI startup that recently made headlines for its powerful and cost-efficient AI model, R1, has reportedly confiscated the passports of key employees to prevent potential leaks of sensitive information. According to AI reporter Kylie Robison from The Verge, citing a report from The Information, DeepSeek engineers are facing travel restrictions intended to safeguard confidential data, which may include trade or state secrets. The move comes amidst increasing concerns surrounding AI-related intellectual property protection, especially as global competition in artificial intelligence heats up.
DeepSeek positioned itself as a competitor to AI firms like OpenAI and Google DeepMind. The AI model offered features like chatbots, content generation, and other AI-driven tools. It quickly became the number one app on major app stores, surpassing global competitors. According to The Information, DeepSeek's rapid global success led to the startup being regarded as ‘national treasure’ in China.
“DeepSeek engineers have handed in their China passports. The China-based AI startup that made headline news earlier this year after releasing a highly capable, cost-efficient AI model, has taken the passports of some key employees, per The Information. The travel ban is intended to prevent the leak of “confidential information that could constitute trade secrets or even state secrets,” the report says, citing three anonymous sources,” Kylie Robison reported.

As the app gained popularity, concerns emerged about data security and government influence. Experts and policymakers questioned whether user data could be accessed by Chinese authorities. The United States, the European Union, and India raised concerns over the AI model’s link to China. Government officials raised concerns over the potential risks of AI tools developed by Chinese companies processing data from Indian users.
The United States has imposed restrictions on Chinese AI firms due to national security concerns. The European Union is evaluating regulations for AI services managing sensitive data. India is examining policies for foreign AI applications operating within its borders.