Downloading DeepSeek will cost you $100 million and 20 years in prison

Imagine creating a software so powerful that governments consider it a national security threat! DeepSeek is exactly such an AI model; one that now, for American citizens, can result in 20 years of prison and a $100 million fine just for using it! But why? What is it about this technology that has sparked such a reaction? Is this just a rumor, or have strict laws really been enacted about it? Who has used this tool and gotten into trouble? The answers to all these questions, and the details that no one dares to reveal, will be disclosed in this report!

Is the $100 million fine and prison sentence for using DeepSeek real?

Americans might have to think twice before downloading a Chinese AI model or investing in a company behind such networks. A law proposed last month by Senator Josh Hawley (Republican from Missouri) could impose penalties of up to 20 years in prison or a $1 million fine for violating trade and collaboration restrictions related to AI if it is successfully passed by Congress.

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Further models from DeepSeek and other Chinese developers, including Alibaba's Qwen 2.5-Max, have been introduced, which we’ve covered in another blog post. Americans who violate the provisions of this bill, even by simply installing DeepSeek, will face penalties under Section 1760 of the Export Control Reform Act of 2018. These penalties could include up to 20 years of imprisonment and a fine of up to $1 million for each violation, in addition to civil penalties. The bill also sets fines for Americans and U.S. companies involved in transferring technology to China or conducting AI research there. These fines could include up to $100 million and the revocation of any permits, contracts, subcontracts, grants, or public benefits previously awarded by federal agencies. Additionally, executives and employees of companies participating in such activities may face penalties of up to $1 million.

The reason for the U.S. hard stance on DeepSeek AI

DeepSeek, a powerful AI model developed in China, has recently attracted attention due to its ability to compete with advanced American chatbots, all while using fewer computational resources. This high efficiency has raised alarms in Washington, where lawmakers are concerned that American companies will struggle to compete with it. Beyond economic concerns, some policymakers believe that China's advancements in AI could enhance its military and surveillance capabilities. The rise of DeepSeek has been compared to the controversy over banning TikTok, where lawmakers debated banning the Chinese app due to concerns over data privacy and national security.

Senator Elizabeth Warren (Democrat, Massachusetts) and Senator Josh Hawley have been strong critics of previous governments’ AI policies. Last year, they issued a joint statement criticizing the slow pace of AI legislation and calling for stricter limits on China’s access to advanced technologies. Senator Josh Hawley said:

Every dollar and every gigabyte of data that goes into Chinese AI is money and data that will ultimately be used against the United States. America cannot afford to strengthen its biggest rival at the expense of weakening itself. Guaranteeing America’s economic superiority means cutting China off from American innovation and stopping support for the innovation of the Chinese Communist Party.