In a first public statement, Microsoft Vice Chairman and President Brad Smith told a US Senate hearing that Microsoft employees are not allowed to use the DeepSeek app, citing serious concerns about data security and content manipulation.
“We don’t allow our employees to use the DeepSeek app,” Smith said, referencing its availability on both desktop and mobile platforms.
App Not Welcome in Microsoft Store
Smith added that Microsoft has intentionally excluded DeepSeek from its app store, reinforcing the company’s stance. The main issue? DeepSeek’s data storage on Chinese servers, which makes user data subject to Chinese intelligence laws and oversight.
Data Sovereignty and Censorship Fears
DeepSeek’s privacy policy states it stores user data in China. Under Chinese law, companies must cooperate with government surveillance agencies when requested. DeepSeek also heavily censors sensitive topics in line with Chinese state guidelines—raising fears of propaganda-influenced AI outputs.
A Contradiction? DeepSeek R1 Still on Azure
Despite Smith’s strong comments, Microsoft had briefly offered DeepSeek’s R1 model on Azure when it went viral earlier in 2024. That move now appears to be at odds with Microsoft’s internal security practices.
Broader Context
Several governments and organizations have already restricted or banned the use of DeepSeek, but this marks the first official acknowledgment by Microsoft of a corporate-level restriction.
Why It Matters
Highlights growing concerns about AI developed under authoritarian regimes
Reinforces scrutiny of cross-border data privacy and national security risks
Adds pressure on tech companies to audit third-party AI tools
This disclosure also signals a larger shift in how US firms treat foreign AI tools, particularly those originating from China, amid heightened geopolitical and cybersecurity tensions.