The US federal government, the Navy, and the state of Texas have already barred the app, and experts believe even tougher restrictions are on the way—potentially using the same kind of legislation that’s been wielded against TikTok.

While ordinary Americans may soon be locked out, US developers might still get a way to use DeepSeek’s model by self-hosting it, which analysts say could neutralise security concerns. Even if the app is wiped off the US market, its influence in slashing AI costs will linger, as American firms scramble to copy its tech, Jefferies noted in a bombshell report.

DeepSeek’s pricing advantage remains staggering—OpenAI’s latest o3-mini model still costs 100 per cent more than DeepSeek’s R1, despite being 63 per cent cheaper than its previous o1-mini version.

The looming crackdown is just the latest flashpoint in the ongoing US-China tech war. While further restrictions on H20 chips appear unlikely due to their limited role in AI training, analysts expect the Biden administration’s AI policies to stay largely unchanged under Trump. However, there could be tweaks—potentially lifting quotas for certain overseas markets depending on their AI activity levels.