The great AI Irony: China cracks down on Western models while US companies flock to DeepSeek

• China continues to purge both demand for AI chips from its ecosystem and foreign AI models, citing ‘security risks’ and privacy concerns
• The starkest warnings come from China’s Ministry of State Security (MSS)
• US firms continue to flock to cheaper alternatives for their AI needs

In what many may consider a tit-for-tat response to increasing US hardening of controls and sanctions over both AI hardware and software service providers, and procurement across the board, Chinese authorities seem to be increasingly pointing to further disentanglement from US-based providers, citing security concerns for users leveraging grey-market access to frontier models such as Anthropic’s Fable.…

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