Seriously Risky Business Newsletter
February 06, 2025
DeepSeek Is a Win for Chinese Hackers
Presented by

Policy & Intelligence
Reactions to the rise of Chinese AI company DeepSeek have so far focused on its economic and geopolitical implications, but the company's models will also provide Chinese cyber espionage actors with their own indigenous capabilities.
The company made headlines in January when it released its 'R1' Large Language Model (LLM), which boasts performance comparable to the latest LLMs from US companies such as OpenAI and Anthropic. DeepSeek was able to train and run its model at a considerably lower cost than its rivals, so it charges about 95% less for API access than OpenAI or Anthropic do for comparable models.
However, last week the Italian government banned DeepSeek from operating in the country and this week the Australian government banned DeepSeek from government devices.