Deepseek employees working on AI models must surrender their passports and can no longer travel freely abroad, according to insiders. Whether these restrictions come from the company or Chinese authorities remains unclear.
In Zhejiang province, where Deepseek's parent company is based, government officials are now screening potential investors before allowing meetings with company management. These measures appear aimed at preventing data leaks and unauthorized acquisitions.
These measures contrast sharply with Deepseek's public image as an open-source advocate and underdog promoting free access to AI models. The company's visibility has increased significantly since its R1 breakthrough. CEO Liang Wenfeng now receives invitations to meet with China's leadership, while local governments have begun incorporating Deepseek's open-source models into their infrastructure.
The source of these new restrictions - whether from Deepseek's management or Chinese government directives - remains unconfirmed. The exact number of employees affected is also unclear. Deepseek currently employs about 130 people, while its parent company High-Flyer, a hedge fund, has approximately 200 employees.
China tightens controls on AI sector
In early March, The Wall Street Journal reported that Chinese authorities began warning top AI entrepreneurs and researchers against U.S. travel, citing national security and economic concerns in the AI sector.
According to the report, Chinese officials fear several scenarios: AI experts could leak sensitive information abroad, U.S. companies might acquire valuable technology, or authorities could detain executives as diplomatic leverage.
While China stopped short of implementing an outright travel ban, the government's message is clear: executives from AI companies and other strategically sensitive industries should limit U.S. and allied country visits to absolute necessities.