Vice Chairman Brad Smith told the U.S. Senate that Microsoft has banned its employees from using the Chinese AI application DeepSeek, citing “data security and propaganda” concerns.
The tech giant also confirmed it will not list DeepSeek in its app store, escalating scrutiny of Chinese AI platforms amid growing geopolitical tensions.
Smith highlighted that DeepSeek stores user data on Chinese servers, posing risks under China’s intelligence laws. He also warned of potential misinformation embedded in the app’s AI outputs. While Microsoft previously hosted DeepSeek’s open-source R1 model on Azure after “rigorous red teaming” to remove harmful content, the company is now prioritising stricter AI governance to ensure data sovereignty and regulatory compliance.
Microsoft employees are banned from using DeepSeek app, president says | TechCrunch https://t.co/dh1ewxkKuj
— TechCrunch (@TechCrunch) May 8, 2025DeepSeek’s data storage on Chinese servers raises concerns under China’s intelligence laws, prompting Microsoft’s ban.
The DeepSeek ban reflects Microsoft’s broader pivot toward secure and compliant cloud infrastructure. Azure, contributing 30% of Microsoft’s revenue, is positioned as a trusted platform for enterprises wary of foreign data exposure. The company has also cancelled hundreds of megawatts in U.S. data centre leases, signalling a move toward agile, regionally compliant setups.
💻🇺🇸🇨🇳 Microsoft Bans Chinese AI App Deepseek Over Data And Propaganda Risks
🔹 Summary:
Microsoft President Brad Smith told the U.S. Senate that the company bars employees from using Chinese AI startup Deepseek’s app, citing concerns over data security and Chinese propaganda… https://t.co/D6Gquy5m3g pic.twitter.com/pNmnmj2yLL
— PiQ (@PiQSuite) May 8, 2025Microsoft’s decision underscores both challenges and strengths. Geopolitical tensions may limit near-term infrastructure growth, but the company’s 15% year-to-date stock gain reflects investor confidence in its long-term cloud and AI strategy. By prioritising security, Microsoft reinforces its position as a leader in enterprise technology.
