China reports that Deepseek is under the close observation

China seems to believe that a local Ki -Startup Deepseek could become a remarkable technical success story for the country.

After the sudden rise of Deepseek in January with the publication of its open “argumentation model”, R1, the company works according to the information under new, closer restrictions that are influenced by the government. Some of the company's employees were prevented from traveling freely abroad, and according to the information, the Chinese government now plays a role in potential investors.

Deepseek enforces the travel restrictions by holding the parent company Quantitative Hedge Fund High-Flyer on the passports of a specific employee.

The developments come for a few weeks after reporting that the Chinese government has instructed AI researchers and entrepreneurs not to travel to the USA because he feared the loss of business secrets.

Techcrunch turned to Deepseek to get a comment.