OpenAI has urged the U.S. and its allies to ban Chinese AI models, citing security risks tied to government oversight.
DeepSeek’s R1 model has showcased performance comparable to OpenAI’s GPT series while leveraging low-cost semiconductors.
Opinion
The clash between China’s rapid AI innovation and U.S. security concerns is set to deepen the tech rivalry between the two superpowers. If the U.S. moves forward with AI restrictions, global supply chains—including those in South Korea—could face significant disruption.
Core Sell Point
Heightened U.S. regulatory actions against Chinese AI could amplify uncertainty across global IT supply chains, warranting a cautious investment approach.
Leading the U.S. AI sector, OpenAI has officially proposed a full ban on Chinese artificial intelligence (AI) models to the U.S. government. The company flagged security concerns, citing that DeepSeek, a Chinese AI startup, could be subject to direct data control by the Chinese government. OpenAI urged for the complete exclusion of such products in the U.S. and allied nations.
This proposal underscores the intensifying tech rivalry between the U.S. and China, now extending deep into the AI domain. Chinese firms, particularly startups like DeepSeek and Manus, have been gaining ground with cost-efficient, high-performance AI models. Leveraging low-cost semiconductors and algorithmic innovations, they are offering AI solutions that rival industry leaders. DeepSeek’s latest model, R1, has demonstrated performance on par with OpenAI’s GPT series, with other Chinese firms following suit.
The U.S. government has expressed growing concerns over national security risks posed by China’s rapid AI advancements. OpenAI’s recommendation may pave the way for additional restrictions or expanded export controls on Chinese AI technology. If Washington moves to restrict or ban Chinese AI imports, it could disrupt global supply chains, impacting companies worldwide, including those in South Korea.
Meanwhile, China is doubling down on AI as a strategic industry, with state-backed initiatives fueling its expansion. President Xi Jinping has directly met with DeepSeek CEO Liang Wenfeng, highlighting the government’s commitment to AI development. As a result, the tech war between the U.S. and China is expected to escalate further.
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