The Chinese "Deepseek" is a service that cannot succeed.

Everything made by China is just a means for the Chinese Communist Party to monitor your every move.

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There’s been a lot of noise lately about the Chinese AI model Deepseek, with some people acting like it’s going to upend the entire AI landscape and make Western models obsolete. But is that really the case? Is Deepseek a genuine threat to models like GPT? Or is this just another overhyped story, possibly fueled by strategic misinformation? Let’s break it down logically.

The Biggest Issue: Censorship and Surveillance

Deepseek’s biggest flaw is right in its DNA—it’s a product of the Chinese Communist Party (CCP). That means it comes with all the baggage of government control, censorship, and surveillance. If you try asking Deepseek about sensitive topics like Xi Jinping, the Tiananmen Square Massacre, or the Chinese military, you won’t get real answers. Instead, you’ll likely receive a canned response saying something like, “I’m sorry, but I can’t discuss that topic.”

Now, ask yourself—why would international users trust an AI model that actively suppresses information? Even worse, Deepseek collects user data without any warning. Unlike Western AI models, which don’t require phone numbers for access, Deepseek demands one. On top of that, it reportedly tracks keyboard input patterns. That means every interaction could be monitored and stored on Chinese servers, ready to be used at the government’s discretion.

Sure, some may argue that companies like Google and OpenAI also collect data, but there’s a key difference: users have legal recourse. If OpenAI or Google mishandle data, users can take legal action. But what about China? If your personal information ends up in CCP databases, what legal protections do you have? None.

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A Limited Future for Deepseek

Even putting censorship aside, Deepseek faces another massive problem—it’s built on U.S. technology. Its core infrastructure relies on NVIDIA’s H800 GPUs, a lower-performance version of the H100 that was designed specifically for the Chinese market. However, recent U.S. sanctions now prohibit NVIDIA from selling even the H800 to China.

What’s more, the memory chips used in these GPUs come from South Korea’s SK Hynix, and it’s only a matter of time before those exports are restricted as well. Without access to cutting-edge hardware, how can China sustain Deepseek’s growth? It can’t. Unless China finds a way to develop its own high-performance GPUs and memory chips, Deepseek’s long-term future is already in jeopardy.

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The Truth About Deepseek’s “Efficiency”

One of the main talking points surrounding Deepseek is its cost-efficiency. Supposedly, it was developed at a fraction of the cost of GPT models while achieving similar performance. This sounds impressive—until you realize how it was achieved.

Deepseek utilizes an AI training method called “Mixture of Experts” (MoE). MoE divides an AI model into smaller, specialized expert modules, activating only the relevant ones for each task. This increases efficiency but also creates limitations. Because MoE restricts the scope of learning, Deepseek lacks the broad adaptability of models like GPT-4. It’s efficient, yes, but only within a narrow range of use cases.

And here’s the kicker: GPT models and Google’s Gemini already include MoE-based optimizations. It’s not a revolutionary feature unique to Deepseek—it’s just a different way of balancing efficiency and cost.

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The Reality of China’s AI Ambitions

China undeniably has some of the best software engineers in the world, and its AI capabilities are formidable. However, the problem isn’t their technical skill—it’s how they use it. China has leveraged AI for nationwide surveillance, censorship, and even preemptive profiling of individuals. Their AI systems are already embedded in their infamous “Great Firewall,” filtering content, tracking citizens, and suppressing dissent.

Deepseek, at its core, is just another extension of this system. It’s built with the same surveillance-focused architecture that fuels China’s vast security apparatus. Any international user who adopts Deepseek would essentially be opting into China’s AI-driven monitoring system.

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Should Investors Worry About Deepseek?

After the Deepseek announcement, stock prices for major AI companies like NVIDIA and OpenAI’s parent company saw a temporary dip. But let’s be real—this is just market overreaction. Once investors understand Deepseek’s limitations, the panic will subside.

If history has taught us anything, it’s that the U.S. government will not allow a Chinese AI service to dominate globally. Look at what happened to TikTok—it’s already banned on government devices in multiple countries, and full-scale restrictions are being debated. The same fate likely awaits Deepseek if it gains traction internationally.

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The Bottom Line: Ignore the Hype

Deepseek may be making headlines, but it’s not a true contender in the global AI race. Its reliance on U.S. technology, built-in censorship, and blatant surveillance practices make it a non-starter for most users outside China. If anything, Deepseek will remain a domestic tool for Chinese citizens, rather than a major competitor to Western AI models.

So, should you be worried? Absolutely not. The best response to Deepseek isn’t panic—it’s indifference.
In addition, Deepseek was threatened with a hacking attack as soon as it launched its service. Who would want to use a service that could be hacked? 
[Source: https://www.reuters.com/technology/cybersecurity/deepseek-limits-registrations-due-cyber-attack-2025-01-27/]

In addition, problems have already occurred because user information has been leaked since the service was launched, and you think Deepseek will bring about innovation? Wow... Even a passing dog would laugh..
(Information source for member personal information and AI database leak incident: https://www.mk.co.kr/news/it/11229375)

In the stock market, it's common for people to overreact to things that end up being insignificant in hindsight. There's actually data showing that over 90% of the things we worry about in the future never happen or aren't as bad as we imagined. DeepSeek is one of those things. It's a service that we can simply ignore and choose not to use.

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Wishing everyone successful investing! 

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