A senior State Department official confirmed this week that Chinese AI firm DeepSeek has supported, and continues to support, China’s military and intelligence operations. The case highlights Beijing’s broader strategy of using American technology platforms to advance its defense goals.
DeepSeek used Southeast Asian shell companies to bypass U.S. export controls on advanced semiconductors, allowing it to operate within the U.S. tech ecosystem while maintaining ties to the People’s Liberation Army (PLA). The incident illustrates how China exploits U.S. openness to access critical technology and gather intelligence, an approach likely mirrored across other Chinese firms.
DeepSeek’s operations reflect a broader Chinese strategy of using commercial technology platforms for intelligence gathering. U.S. officials report that DeepSeek appears in procurement records for the People’s Liberation Army (PLA) over 150 times and has provided services to PLA research institutions. With a global user base, the company gained access to vast amounts of user data, which it transmitted to China via infrastructure linked to China Mobile, a state-owned telecom provider.
Congressional analysis of DeepSeek’s privacy policies confirms this data flow. The platform collected user queries, data inputs, and usage patterns from millions worldwide, allowing China to profile U.S. research priorities, problem-solving methods, and technological capabilities. This is intelligence gathering at scale, made possible by users unknowingly feeding data into a system tied to a foreign military.
The episode exposes broader flaws in U.S. efforts to restrict China’s access to sensitive technology. Despite bans on sales of advanced AI chips to Chinese firms, DeepSeek reportedly acquired large volumes of Nvidia’s H100 processors by exploiting third-party shell companies and remote data center access. These methods highlight how Chinese firms bypass restrictions through indirect channels, suggesting systemic gaps in enforcement.
DeepSeek’s presence on major U.S. cloud platforms, Amazon, Microsoft, and Google, further expanded China’s access to American infrastructure. This integration allowed Beijing to collect intelligence while posing as a commercial partner, gaining insight into cloud operations and user behavior.
Hellbound and Down 