⚖️ Open AI wants Chinese AI Ban

Author

Liam Gill
March 27, 2025

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OpenAI’s Policy Proposal: Banning Chinese AI

OpenAI is advocating for U.S. government restrictions on AI models from DeepSeek, a Chinese AI laboratory it characterizes as “state-subsidized” and a potential security threat due to China’s data regulations. The proposal, submitted as part of the Trump administration’s AI Action Plan, recommends prohibiting “PRC-produced” models in critical global markets to thwart intellectual property theft and alleviate privacy concerns. OpenAI has previously accused DeepSeek of unauthorized usage of its models; however, this latest action intensifies the discussion surrounding national security and AI competition.

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Implications for AI Startups

For AI startups, this policy fight indicates rising geopolitical tensions in the AI sector, with potential implications for access to AI models, infrastructure, and partnerships. If OpenAI’s proposal gains momentum, startups utilizing Chinese AI models—or even those employing open-source alternatives from DeepSeek—could encounter regulatory scrutiny or restrictions. This may also influence investor sentiment, as companies linked to PRC-related AI technology might be perceived as higher-risk. Furthermore, this could signal the early stages of the United States enforcing isolationist policies in the tech industry. This situation could restrict your ability to grow a startup in Canada if you accept foreign funding.

Preparing for a Shifting Regulatory Landscape

Startups should closely monitor how U.S. policymakers respond, as any new export rules could affect access to AI tools and cloud computing resources. Companies developing AI models should also evaluate their supply chains, ensuring they do not unknowingly depend on technologies that might become restricted. As the regulatory environment surrounding AI tightens, maintaining flexibility in partnerships and technology stacks will be vital for long-term stability.

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