by Sam Leigh | February 25, 2025

It started with a seemingly routine business announcement — China’s largest automakers striking deals to integrate DeepSeek AI into their vehicles. Within days, companies like BYD, Geely (Volvo, Lotus), SAIC (MG, LDV), and Chery had publicly declared their intention to make DeepSeek’s AI models the brains behind their next-generation smart cars. Even more striking? Global auto giants like General Motors, Volkswagen, and Nissan — through their Chinese joint ventures — had also signed on.

For an industry already in the midst of massive transformation, this move sent shockwaves well beyond the auto sector.

To the casual observer, DeepSeek is just another player in the AI revolution. But beneath the surface, this isn’t just about car companies chasing the latest AI trend. This is about data. Surveillance. Control. And the growing realization that China is embedding its AI into critical infrastructure worldwide.

Some see it as a competitive threat, others as a national security nightmare.

Either way, ignoring it is no longer an option.

The Rise of DeepSeek: An AI That’s Hard to Contain

Just a year ago, most people in the West had never even heard of DeepSeek. Now, it’s one of the most talked-about AI players in the world.

DeepSeek gained attention in 2024 when it developed a model comparable to OpenAI’s GPT-4 — but at a fraction of the cost. Reports suggested DeepSeek trained its latest AI on just $6 million, compared to OpenAI’s estimated $100 million investment in training GPT-4.

For AI researchers and tech companies, this was a wake-up call. How had DeepSeek pulled off such a feat, especially in a China that was supposed to be struggling under U.S. semiconductor restrictions?

The answer? Efficient optimization, strategic workarounds, and a relentless push toward AI self-sufficiency.

Even more concerning? DeepSeek’s AI models were quickly being embedded into everyday technology — including smart assistants, enterprise software, and now, automobiles.

Governments took notice.

By early 2025, Italy, Taiwan, and South Korea had all launched investigations into DeepSeek’s data practices. Within weeks, Florida banned DeepSeek AI in government offices, citing privacy risks. The Biden administration launched a sweeping probe into Chinese-made smart vehicles, warning that they could be a Trojan horse for mass surveillance.

And then came the Commerce Department’s bombshell proposal — one that would effectively ban AI-powered Chinese smart vehicles from U.S. roads altogether.

It wasn’t just about keeping out competitors. It was about stopping what some officials saw as a national security threat in real time.

Smart Cars: The New Frontline in Data Surveillance

Here’s the reality: modern vehicles aren’t just transportation — they are mobile data centers.

Every smart car today is equipped with an arsenal of data-collecting tools:

Cameras
Microphones
GPS trackers
Biometric authentication
Voice recognition software
Internet connectivity

When integrated with an advanced AI model like DeepSeek, the potential for constant data collection and transmission becomes staggering.

Think about it:

Your car knows where you go, how fast you drive, where you stop, and how often.
It records your voice, your habits, and even who rides with you.
It may even predict your routines — your favorite coffee shop, your gym schedule, and where your kids go to school.

Now imagine all of that information being potentially accessible by a foreign government.

Sound extreme? It’s not.

China’s National Intelligence Law: The Built-In Backdoor

Under China’s National Intelligence Law (2017), all Chinese companies are required to “support, assist, and cooperate with national intelligence efforts.” This means that any data collected by a Chinese AI system — no matter where it is being used — can legally be demanded by the Chinese government.

This is why DeepSeek’s rapid integration into smart vehicles is raising alarms in Washington, London, Brussels, and beyond. It’s not just about data collection — it’s about who controls that data, and who can access it.

And in this case, it’s not the consumers driving the cars.

From Huawei to TikTok — And Now, to DeepSeek

If this all sounds familiar, it should.

Huawei: The 5G Playbook

Western governments have been here before — with Huawei. The Chinese telecom giant was poised to dominate global 5G networks until security agencies flagged its potential for espionage. The U.S., Australia, Japan, and several European countries banned Huawei from their 5G infrastructure, fearing that its network equipment could be used for surveillance or sabotage.

TikTok: A Trojan Horse for Data Collection?

Then came TikTok. The wildly popular app became a national security flashpoint after reports suggested that its parent company, ByteDance, could be compelled to share user data with Beijing. The U.S. federal government banned TikTok on all executive agency devices, and dozens of U.S. states, along with Canada, the UK, and the European Commission, followed suit. The current administration has reversed course in an attempt to force a sale of the PRC-backed propaganda and data mining tool to an American interest.

Doubtful.

Now, it’s happening again. But this time, it’s not about phones or networks — it’s about cars.

And in a crisis, a compromised vehicle is far more dangerous than a compromised social media app.

The DeepSeek Effect: A Shockwave Through the AI Industry

DeepSeek isn’t just rattling national security officials — it’s also upending the global AI market.

A Threat to Silicon Valley’s AI Dominance

For years, AI has been dominated by Western firms — OpenAI, Google DeepMind, Microsoft, Meta. But DeepSeek’s sudden rise has sent a clear message: China is no longer playing catch-up — it’s competing at the highest level.

DeepSeek’s AI models match earlier GPT releases from OpanAI in performance, and continues to role out updates weekly.
Its training costs are a fraction of its U.S. competitors.
Its AI assistant briefly overtook OpenAI’s ChatGPT in U.S. app downloads.

Silicon Valley took notice — and so did Wall Street.

In early 2025, when DeepSeek announced its latest advancements, tech stocks tanked.

Nvidia lost nearly $600 billion in value in one day — the worst in Wall Street history.
Microsoft and Google saw their stock prices tumble, as investors feared DeepSeek’s efficiency could undermine their AI-driven business models.

The message was clear: DeepSeek wasn’t just another startup — it was an existential challenge to Western AI supremacy.

The Road Ahead: The Need for Trusted AI Partners

DeepSeek’s expansion isn’t just a tech story — it’s a warning to Western Governments, Hollywood, Silicon Valley, and global enterprises alike.

AI isn’t just about innovation — it’s about trust.

Final Thoughts: The Future of AI Is at a Crossroads

DeepSeek’s rise is a pivotal moment — for AI, for national security, and for industries built on intellectual property.

The AI revolution is here. But the question is no longer just who builds the best models?

It’s who builds them responsibly?

Because the biggest risk isn’t just ignoring AI.

It’s choosing the wrong AI — and paying the price later.

Sam Leigh is the CEO and Managing Partner at iA, writing about technology, innovation, and the future of culture. Book a 1:1 with Sam Here!

DeepSeek Is in the Driver’s Seat — And That’s a Big Security Problem