The Trump administration is considering a ban against Chinese AI chatbot DeepSeek from U.S. government devices amid national-security concerns. According to people familiar with the matter, U.S. officials are worried about how DeepSeek handles user data, which is said to be stored in servers in China. They also expressed concerns over how DeepSeek hasn’t sufficiently explained how it uses the data it collects or who has access to it.
The Wall Street Journal was the first to report the news, stating further how administration officials are further considering banning the chatbot from app stores and placing limits on how U.S.-based cloud service providers could offer DeepSeek’s AI models to their customers. These discussions, however, are still in the early stages.
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Several governments have been banning the use of DeepSeek ever since its emergence. South Korea, for instance, suspended new app downloads after the company failed to address regulators’ concerns about its privacy policy. Taiwan’s Ministry of Digital Affairs stated that DeepSeek “endangers national information security”, banning government agencies from using the company’s AI. Italy has also banned DeepSeek after an investigation by the country’s privacy watchdog into how DeepSeek handles personal data.
Within the US, certain agencies have independently acted as well. For instance, the US Navy has warned its members to avoid using DeepSeek “in any capacity” due to “potential security and ethical concerns.” The email specifically asked recipients to “refrain from downloading, installing, or using the DeepSeek model in any capacity.”
Banning DeepSeek entirely for the general public, however, is complicated considering the AI models are open-source. This means that anyone can download and use them for free. Many US cloud vendors have been providing DeepSeek’s models as part of their services, and restricting access can anger investors and businesses who support the technology.
“U.S. officials considering technology controls are dealing with new territory here on what to do with open-sourced models.”
Paul Triolo, a partner at DGA-Albright Stonebridge in Washington, D.C.
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A financial analyst giving a presentation to a group of investors about annuity insurance.
10. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 13
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions. On March 7, Northland analyst Michael Latimore downgraded the stock to “Market Perform” from Outperform with a price target of $4, up from $2.50. The firm will keep the shares downgraded until the new CEO’s plans are implemented and BigBear.ai returns to meaningful and consistent growth.
The analyst told investors in a research note how the company has reported a large revenue and slight EBITDA miss in Q4, and that government spending patterns remain uncertain in the short term. The stock of the artificial intelligence company has slipped more than 20% after the company warned that it could see a disruption of federal contracts.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 63
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On March 8, the stock received a “Hold” rating from William Blair analyst Louie DiPalma.
Two days prior, the firm had upgraded the stock from “Underperform” to Market Perform without a price target, citing a more attractive valuation after a significant drop in the company’s stock price.
“While valuation is still frothy with potential downside risk of greater than 40% on government contract delays, there have been positive developments,” analysts wrote.
William Blair believes the February 26 DOGE executive order “seems earmarked for Palantir.” The firm anticipates Palantir to win a new contract with the U.S. government to implement a centralized payment tracking system, assisting in overall cost-cutting strategies and the Department of Defense’s annual audit.
Palantir has also been pursuing contracts with the US Army.
“Its combination of revenue growth (31% guidance for 2025) and operating margin (45% for 2025) rank among the highest in all software. With the focus on growth, we did not fully appreciate Palantir’s operating leverage and ability to grow with minimal hiring. Palantir’s revenue from 2022 through 2024 grew 50% while headcount increased by only 3%.”
