AI Daily: Lawmakers looking to ban DeepSeek app from government devices

Morgan Stanley sees selloff in Nvidia’s shares on DeepSeek concerns.

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

DEEPSEEK BAN: 

Lawmakers are planning to introduce legislation on Thursday that would bar DeepSeek’s chatbot application from government-owned devices, amid security concerns that the app could provide user information to the Chinese government, The Wall Street Journal’s Natalie Andrews reports. DeepSeek, a Chinese-built large-language open-source model that claims to rival offerings from Microsoft-backed (MSFT) OpenAI’s ChatGPT and Meta Platforms (META) but using a much smaller budget. DeepSeek’s new AI model is being praised for being cost-effective and capable of running on less-advanced chips, which seems to have raised questions about the high valuations of companies like Nvidia (NVDA). “This should be a no-brainer in terms of actions we should take immediately to prevent our enemy from getting information from our government,” Josh Gottheimer, a New Jersey Democrat, said.

OPPORTUNITY: 

Morgan Stanley acknowledges that DeepSeek creates some headwinds around export controls and longer-term investment and that sentiment on Nvidia has worsened around potential longer-term risks, but tells investors that near term checks are firming, both for Hopper and “all flavors of Blackwell.” Talking to cloud contacts, the firm is hearing that “none of this changes the plans of any of the major participants,” adds the analyst, who says Blackwell supply visibility continues to build and that customer desire to spend is “clearly on display.”

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Originally Posted February 6, 2025 – AI Daily: Lawmakers looking to ban DeepSeek app from government devices