Introduction
The investigation initiated by Texas Attorney General Ken Paxton into DeepSeek, a Chinese AI company with ties to the Chinese Communist Party [1] [7] [8], highlights growing concerns over privacy practices and potential national security risks associated with foreign technology. This scrutiny reflects a broader trend of state-level actions in the absence of comprehensive federal AI regulations.
Description
Texas Attorney General Ken Paxton has initiated an investigation into DeepSeek [1] [2] [4] [5] [6] [7] [8], a Chinese AI company linked to the Chinese Communist Party [1] [7] [8], due to concerns regarding its privacy practices related to its artificial intelligence platform [5]. The investigation is primarily focused on DeepSeek’s connections to the CCP [5], which mandates that corporations share data upon request [5]. Paxton has informed DeepSeek that its platform may violate the Texas Data Privacy and Security Act [5], and as part of the inquiry, he has issued Civil Investigative Demands to technology giants [1] [4] [7], including Google and Apple [1] [3], seeking documentation regarding DeepSeek’s chatbot application and its compliance prior to consumer access.
Paxton has expressed concerns that DeepSeek may serve as a conduit for the Chinese government [5] [7], potentially undermining American AI leadership and compromising citizens’ data. In response to these concerns, Texas Governor Greg Abbott has prohibited state officials from using DeepSeek and similar Chinese technologies on government-issued devices [5], a move that has been echoed by officials in Virginia and New York. This ban prohibits state employees and contractors from downloading and using these applications on both personal and state-owned devices [3].
The recent launch of DeepSeek’s competitively priced R1 AI model has intensified scrutiny among US lawmakers and investors, leading to investigations and calls for bans across the country [3]. Bipartisan representatives in Congress have introduced legislation aimed at banning DeepSeek’s AI application from federal devices [5], citing risks of surveillance and misinformation associated with the potential use of the app by the Chinese government [5]. Despite these actions [5], former President Donald Trump has stated that DeepSeek does not represent a national security threat and that the US could potentially benefit from its AI innovations [5].
This investigation is part of a broader trend among state legislatures to enact their own AI-related regulations in the absence of federal oversight. Recent legislative measures include Colorado’s AI Act, Tennessee’s ELVIS Act [8], and California’s initiatives aimed at enhancing transparency in AI training data. Texas currently lacks specific AI safeguards [8], prompting Paxton to utilize existing privacy laws to protect residents from potentially harmful AI systems. The Pentagon [4], NASA [4], and the US Navy have also prohibited the use of DeepSeek’s platform, reflecting a growing apprehension about the security risks associated with Chinese technology. Additionally, the Texas legislature is considering the Texas Responsible AI Governance Act (TRAIGA) [8], aimed at positioning Texas as a leader in AI governance amidst a competitive landscape of AI development between the US and China.
Conclusion
The investigation into DeepSeek underscores the increasing vigilance of state authorities in addressing potential security threats posed by foreign AI technologies. It also highlights the urgent need for comprehensive federal AI regulations to ensure consistent and effective governance. The actions taken by Texas and other states, along with proposed federal legislation, reflect a concerted effort to safeguard national interests and maintain leadership in the rapidly evolving field of artificial intelligence.
References
[1] https://ktrh.iheart.com/featured/houston-texas-news/content/2025-02-14-ken-paxton-announces-investigation-into-chinese-ai-company/
[2] https://www.law.com/texaslawyer/2025/02/20/deepseek-in-the-crosshairs-texas-investigates-chinese-ai/
[3] https://www.statesman.com/story/business/technology/2025/02/14/ken-paxton-deepseek-chinese-artificial-intelligence-investigation-launch-google-apple/78640969007/
[4] https://natlawreview.com/article/texas-ag-investigates-deepseek-list-banned-countries-expands
[5] https://www.newsmax.com/us/texas-ag-paxton/2025/02/17/id/1199389/
[6] https://news.bloomberglaw.com/litigation/texas-launches-deepseek-investigation-over-privacy-concerns
[7] https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-announces-investigation-deepseek-and-notifies-chinese-ai-company-its
[8] https://www.transparencycoalition.ai/news/texas-ag-opens-investigation-of-deepseek-testing-the-power-of-state-laws-over-ai
