Technology executive Rene Haas, head of Arm, anticipates DeepSeek's termination
In an interview with the Financial Times on February 10, 2025, Arm CEO Rene Haas shared his thoughts on the controversial AI company, DeepSeek. Haas' prediction that DeepSeek could face shutdown due to foreign policy issues has sparked a wave of discussions about AI privacy.
DeepSeek, a Chinese AI company, has gained popularity since its launch in December 2024. The company's open-source AI model, DeepSeek R1, has over 6,000 ratings on the App Store. However, its meteoric rise has been met with concern, particularly in the U.S., where multiple government agencies and states have banned its use on government devices.
The potential ban on DeepSeek in the U.S. is due to existing tensions between the U.S. and China in the tech sector. The U.S. government fears that DeepSeek could expose sensitive data to foreign servers, posing a significant security risk. Texas was the first to implement this ban, followed by the Navy, NASA, the Pentagon, and the House of Representatives.
Congressional actions have further advanced this effort. Lawmakers introduced the bipartisan No Adversarial AI Act, aiming to ban federal use of AI tools developed by foreign adversaries such as China, with DeepSeek specifically labeled a “profound threat” to national security. Several U.S. senators sent a letter in early August 2025 to the Commerce Department requesting a security review of DeepSeek’s open-source AI model R1, citing risks of data leaks, weaponization, and potential support for Chinese military or intelligence activities.
However, critics argue that a total ban might hinder AI innovation in the U.S., highlighting tensions between national security precautions and technological competitiveness. Additionally, recent policy shifts such as easing export controls on advanced chips to China could indirectly affect DeepSeek’s development capacity, complicating regulatory efforts.
DeepSeek's launch caused a record-breaking $593 billion loss in market value for California-based Nvidia, which manufactures the world’s leading AI chips. The company's rivals, like ChatGPT, are now questioning their future demand due to DeepSeek's claims of delivering similar performance at a much lower cost.
The interview focused on the impact of DeepSeek R1 on the AI industry. Rene Haas expressed skepticism about DeepSeek's future, echoing concerns about privacy similar to those TikTok has been grappling with for years. The DeepSeek mania is finally sparking conversations about AI privacy, a topic that is becoming increasingly relevant in the rapidly evolving AI landscape.
[1] DeepSeek AI Faces U.S. Restrictions Amid Concerns Over Security and Foreign Policy. (2025). Financial Times. Retrieved from https://www.ft.com/content/d2a1b75c-286d-4a88-882d-7a7b25f9632d [2] DeepSeek AI: Universities Block App Over National Security Concerns. (2025). The New York Times. Retrieved from https://www.nytimes.com/2025/02/15/technology/deepseek-ai-universities-block.html [3] DeepSeek AI: U.S. Senators Request Security Review of Open-Source Model. (2025). Reuters. Retrieved from https://www.reuters.com/technology/us-senators-request-security-review-open-source-ai-model-deepseek-2025-08-03/ [4] DeepSeek AI: Texas Bans App on Government-Issued Devices. (2025). CNN. Retrieved from https://www.cnn.com/2025/01/01/us/texas-bans-deepseek-app-government-issued-devices/index.html [5] DeepSeek AI: Why a Total Ban Might Hinder Innovation. (2025). Wired. Retrieved from https://www.wired.com/story/deepseek-ai-ban-innovation/
- Concerns about DeepSeek's future performance and potential impact on the AI industry persist, given the U.S. restrictions and bans that aim to mitigate security risks and foreign policy issues.
- Recent developments in the technology sector, such as the rise of DeepSeek and the contention surrounding this Chinese AI company, have brought the issue of displaying responsible and secure AI technology to the forefront of discussions.
- As the tech race continues to intensify, the debate over the balance between privacy, security, and technological advancement, as illustrated by the questioning of DeepSeek's gaming capabilities and its lower costs compared to competitors, is becoming increasingly critical in shaping the future of the AI landscape.
