DeepSeek's launch forces US AI companies to confront the compute efficiency gap, likely accelerating their development of more cost-effective models while emphasizing security and privacy as key differentiators.
As DeepSeek upends all previously held beliefs about AI’s capabilities and costs, security concerns are increasing from a panicked US. DeepSeek signals China’s ability to compete with the West, raising questions and potential red flags from cybersecurity experts. Now businesses wanting to take advantage of AI’s newest developments are wondering if they can do so without exposing themselves to risk.
We spoke with Matthew Martin, CEO of global cybersecurity firm Two Candlesticks to break down the implications of DeepSeek’s rise and what it means for cybersecurity, AI development, and an impending US response.
Cybersecurity top of mind: DeepSeek’s capabilities may be impressive, but the question remains: Who controls the data, and how secure is it?
"Data processed through DeepSeek could potentially be accessed by Chinese authorities under their National Intelligence Law, which requires companies to share data when requested," Martin shares. "This isn't just theoretical—we've seen similar concerns with TikTok, Huawei, and other Chinese tech companies."
With security concerns looming, mid-market companies—especially those without in-house cybersecurity expertise—are increasingly turning to external consultants to de-risk their AI integrations.
Instead of avoiding AI entirely, businesses are layering in additional controls before deployment with the help of third-party experts, allowing them to benefit from the newest AI without compromising security and compliance.
Data processed through DeepSeek could potentially be accessed by Chinese authorities under their National Intelligence Law, which requires companies to share data when requested. This isn't just theoretical—we've seen similar concerns with TikTok, Huawei, and other Chinese tech companies.
Chinese push towards AI leadership: Martin sees Chinese ambition within AI development, even in the constraints of limited access to Western-made AI chips and restrictions on high-performance computing hardware:
"China's aggressive push into AI development, exemplified by DeepSeek, shows their determination to compete with and potentially surpass Western capabilities. While their claims need verification, it demonstrates China's strategic investment in the AI arms race."
US response: The launch of DeepSeek has put pressure on US-based AI companies to rethink their strategies. "DeepSeek's launch forces US AI companies to confront the compute efficiency gap, likely accelerating their development of more cost-effective models while emphasizing security and privacy as key differentiators," says Martin.
Political dynamics: DeepSeek’s latest developments aren’t happening in a vacuum. Geopolitics are shaping the industry just as much as technology itself. Martin explains, "The political dimension adds another layer of complexity, with potential enhanced export controls on chips to China—making it crucial for companies to have flexible, future-proof strategies for their AI implementations."
