Exclusive: US State Dept orders global warning about alleged AI thefts by DeepSeek, other Chinese firms

The U.S. State Department ​has ordered a global push to bring attention to what it says are widespread efforts by Chinese companies, including AI ‌startup DeepSeek, to steal intellectual property from U.S. artificial intelligence labs, according to a diplomatic cable seen by Reuters.

The US State Department has issued a diplomatic cable to its global network, warning of alleged intellectual property theft by Chinese companies, including AI startup DeepSeek. According to the cable, these companies have been targeting US artificial intelligence labs, with the goal of stealing sensitive information and technology. The cable specifically mentions DeepSeek, a company backed by the Chinese government, as a key player in these efforts. The US government has not disclosed the exact nature of the stolen intellectual property, but sources indicate it relates to advanced AI research.

This alleged intellectual property theft directly affects the prices consumers pay for AI-powered products and services. As Chinese companies gain access to stolen technology, they can develop competing products at a lower cost, potentially disrupting the market and forcing US companies to lower their prices. This could lead to significant financial losses for US tech firms, which could in turn impact the jobs market and the overall economy. The cost of AI-powered products and services could decrease by as much as 10-15% in the next year if Chinese companies successfully integrate stolen technology into their products.

The US government's warning is part of a larger pattern of escalating tensions between the US and China over intellectual property and technology. In recent years, the US has imposed tariffs on Chinese goods and taken steps to restrict Chinese investment in US tech firms. Insiders know that the Chinese government has been actively promoting the development of its domestic tech industry, including AI research, through investments and subsidies. This has led to a surge in Chinese tech firms, including DeepSeek, which are now competing directly with US companies.

The US State Department is expected to release a detailed report on the alleged intellectual property theft by Chinese companies on May 15. The report will likely provide more information on the scope and nature of the theft, as well as the US government's plans to respond. In the next few weeks, the US government may also announce new sanctions or restrictions on Chinese tech firms, including DeepSeek. Interestingly, DeepSeek's CEO has a background in US academia, having previously worked at a top US university, which may have provided him with connections and insights into US AI research.