Americans Could Face $1M Fine or 20 Years in Prison for Downloading AI Tool DeepSeek

US Senator Josh Hawley (R-MO) has introduced legislation seeking to ban DeepSeek, the newly launched AI tool making waves as a competitor to ChatGPT, within the United States.

The proposed bill, introduced last week, aims to prevent US individuals and entities from contributing to the development of artificial intelligence in the People's Republic of China, among other provisions. Harvard AI research fellow Ben Brooks described it as 'easily the most aggressive legislative action on AI' to date.

$1M Fine And 20 Years In Prison

It could impose severe penalties, including 20-year prison sentences and fines reaching £0.80 million ($1 million) for individuals or a staggering £80.13 million ($100 million) for companies, on anyone importing 'technology or intellectual property' developed in China.

A Futurism report suggests the bill is unlikely to become law due to its extreme nature. The report also points out that its introduction last week might indicate it's already stalled in the legislature. Even if it doesn't pass, the bill reveals significant concern among lawmakers about DeepSeek's rapid ascent and the massive selloff it prompted last week.

Competition And Control

Congress is now scrambling to block China, aiming to protect US market interests. Lawmakers, including figures as politically diverse as Hawley and Elizabeth Warren (D-MA), have criticised the Biden administration for not acting sooner with the AI chip export ban implemented in 2022.

'Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States,' Senator Hawley said. 'America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidisation of CCP innovation.'

In an appeal to Congress obtained by The Washington Post, Hawley and Warren wrote: 'Multiple administrations have failed — at the behest of corporate interests — to update and enforce our export controls in a timely manner. We cannot let that continue.'

DeepSeek: Threat Or Competition?

Earlier this month, DeepSeek showed it could match the performance of OpenAI's leading AI chatbots while using far fewer resources. This has sparked concerns that Wall Street may be dramatically overvaluing AI companies.

Lawmakers see Chinese AI as a potential national security risk. US companies are still reeling from the sudden surge of intense competition that erased over £0.80 trillion ($1 trillion) in market value.

Hawley and Warren are part of a growing group of lawmakers pushing for stricter export controls on China. They aim to limit Chinese companies' access to crucial AI chips from US manufacturers like Nvidia.

Nvidia's CEO, Jensen Huang, whose company is based in California, met with President Donald Trump on 31 January, shortly after Nvidia experienced its largest single-day loss ever.

The meeting details remain undisclosed, aside from a spokesperson telling Reuters that 'Jensen and the President discussed the importance of strengthening US technology and AI leadership.' Trump told reporters, 'I can't say what's gonna happen. We had a meeting. It was a good meeting.'

National Security or Market Protection?

It's unclear whether there's enough support to completely outlaw Americans' use of DeepSeek, especially given the ongoing debate surrounding the TikTok ban. That ban, also based on national security concerns, was approved by Congress last year but is now in limbo due to Trump's changed stance; he initially supported it but now opposes it.

Is DeepSeek's AI chatbot truly a national security threat, or are lawmakers primarily driven by the desire to safeguard US economic interests? The fact that some have personal investments in the outcome certainly raises questions.