China's AI 'National Treasure' DeepSeek restricts engineers' travel over data leak fears
Chinese AI startup DeepSeek has reportedly confiscated engineers' passports to prevent data leaks, sparking global concerns. As DeepSeek-R1 gains prominence, scrutiny over AI security intensifies, highlighting tensions between intellectual property protection and employee rights.

In a move that has raised eyebrows globally, Chinese artificial intelligence (AI) startup DeepSeek has reportedly confiscated the passports of its key engineers to prevent potential leaks of sensitive information. This measure underscores the escalating efforts to protect intellectual property in the fiercely competitive AI industry.
Security measures amid rapid ascendancy
DeepSeek, headquartered in Hangzhou, has rapidly ascended in the AI sector with its flagship model, DeepSeek-R1. Renowned for its efficiency and cost-effectiveness, DeepSeek-R1 excels in tasks requiring logical inference, coding, and complex reasoning. Its open-source approach has further solidified its position in the global AI community.
The company's swift rise has not gone unnoticed. DeepSeek's R1 model has been integrated into platforms like Amazon Bedrock and Azure AI Foundry, making advanced AI capabilities more accessible to a broader audience.
This widespread adoption has elevated DeepSeek's status, with some considering it a 'national treasure' in China.
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Passport confiscation: A controversial move
According to reports from The Verge, DeepSeek has implemented travel restrictions by collecting the passports of certain key employees. This action aims to safeguard confidential information that could be deemed trade or even state secrets.
The company's parent entity, High-Flyer, a quantitative hedge fund, is reportedly enforcing these measures.
This development comes amid heightened global concerns about data security and the potential misuse of AI technologies. Governments worldwide are scrutinizing AI advancements, especially those emerging from China, due to potential national security implications. The US, European Union, and India have all expressed apprehensions regarding AI tools developed by Chinese firms processing data from their citizens.
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Global AI landscape and DeepSeek's position
DeepSeek's prominence has spurred competitors to accelerate their AI developments. Chinese tech giant Baidu recently unveiled Ernie X1, an AI model positioned as a competitor to DeepSeek-R1, claiming similar performance at half the cost. This intensifying competition highlights the strategic importance of AI capabilities on the global stage.
The passport confiscation strategy, while controversial, reflects the lengths to which companies may go to protect their technological advancements. As AI continues to reshape industries and economies, safeguarding proprietary information becomes paramount, albeit at the potential cost of employee autonomy and international mobility.
As DeepSeek navigates these internal security measures, the global community watches closely. The balance between protecting intellectual property and ensuring ethical treatment of employees presents a complex challenge. How DeepSeek addresses this issue may set precedents for other tech firms operating in high-stakes environments.