The U.S. Navy has issued a directive instructing its members to avoid using artificial intelligence (AI) technology from China’s DeepSeek, citing “potential security and ethical concerns.” CNBC has learned that the Navy’s warning, sent via email to personnel on Friday, explicitly prohibited the use of DeepSeek’s AI “in any capacity,” whether for work-related tasks or personal use.
A spokesperson for the U.S. Navy confirmed the authenticity of the memo, clarifying that the warning aligns with the Department of the Navy’s Chief Information Officer’s generative AI policy. The email was sent to the distribution list OpNav—short for Operational Navy—indicating that it was an all-hands directive. The advisory was reportedly based on guidance from the Naval Air Warfare Center Division Cyber Workforce Manager.
The Navy’s decision comes in the wake of DeepSeek’s recent release of its advanced AI model, R1, which rivals AI technology from OpenAI. DeepSeek’s model is open-source, making it accessible to AI developers worldwide. In a short span, the DeepSeek app surged to the top of Apple’s App Store, surpassing OpenAI’s ChatGPT, and gaining widespread industry praise for its advanced reasoning capabilities.
DeepSeek’s emergence has also disrupted the capital markets, as investors fear that AI products may soon require significantly less expensive infrastructure than previously anticipated. The Chinese company revealed that it built its large language model in just two months for under $6 million, despite U.S. restrictions on chip exports to China. By contrast, companies like OpenAI, Google, and Anthropic have spent billions developing similar models.
On Monday, news of DeepSeek’s advancements sent shockwaves through Wall Street, leading to a significant selloff in AI chipmaker stocks. Shares of Nvidia and Broadcom both plummeted by 17%, collectively wiping out $800 billion in market capitalization. The AI-driven downturn also contributed to a 3.1% drop in the Nasdaq index.
Navy’s Firm Stand Against DeepSeek
The Navy’s warning arrived just days before DeepSeek announced a temporary restriction on new user registrations, citing “large-scale malicious attacks” on its services. However, the company later resumed operations as usual.
In the email, the Navy emphasized that personnel must “refrain from downloading, installing, or using the DeepSeek model in any capacity.” The message underscored the importance of cybersecurity, urging service members to remain vigilant against potential risks associated with foreign AI technology.
While the U.S. government has previously implemented restrictions on Chinese AI advancements, the Navy’s directive highlights growing concerns over AI security in defense operations. Experts speculate that further measures could be taken to prevent unauthorized AI models from influencing U.S. military and government infrastructure.
The situation continues to develop as officials and industry leaders assess the broader implications of DeepSeek’s breakthrough in artificial intelligence.
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