China-based AI startup DeepSeek has reportedly confiscated the passports of key employees in a bid to prevent sensitive information from leaking abroad, according to a report from The Information, cited by AI reporter Kylie Robison.

The move comes amid intensifying global competition in artificial intelligence and concerns over safeguarding AI-related intellectual property. DeepSeek, which gained widespread attention earlier this year for its cost-efficient and powerful AI model, has been under growing scrutiny as it expands internationally.

Travel restrictions imposed

According to The Information, DeepSeek engineers have been subjected to travel restrictions, with their passports held by the company’s parent firm, High-Flyer, a hedge fund. The restriction is reportedly meant to prevent employees from travelling abroad and potentially sharing trade or state secrets.

“DeepSeek engineers have handed in their China passports. The China-based AI startup that made headline news earlier this year after releasing a highly capable, cost-efficient AI model, has taken the passports of some key employees, per The Information. The travel ban is intended to prevent the leak of ‘confidential information that could constitute trade secrets or even state secrets,’ the report says, citing three anonymous sources,” Kylie Robison posted.

The report also suggests that the Chinese government is playing a role in decisions related to DeepSeek’s future, particularly regarding foreign investments. Beijing has reportedly increased oversight of AI researchers and business leaders, discouraging them from travelling to the United States over concerns that they could expose critical technological developments.

DeepSeek’s rapid rise and scrutiny

DeepSeek has positioned itself as a competitor to leading AI firms such as OpenAI and Google DeepMind. Its AI model, which includes chatbot capabilities and content generation tools, quickly became the top-ranking app on major app stores, surpassing global competitors. The startup’s swift success has led to it being regarded as a "national treasure" in China.

However, as its influence has grown, so too have concerns from international governments over data security and potential Chinese state influence. Authorities in the United States, the European Union, and India have raised alarms over AI tools developed in China processing foreign user data. The U.S. has already imposed restrictions on Chinese AI firms, citing national security risks, while the EU has been considering regulatory measures. India has also been reviewing policies regarding foreign AI applications operating within its borders.

Growing concerns over AI security

China’s strict regulations on technology and data security have led to high-profile companies taking measures to prevent leaks of sensitive information. While it remains unclear how many DeepSeek employees are affected, reports indicate that the travel restrictions align with broader government-backed efforts to maintain AI advancements within China.