Downloading DeepSeek could land you a 20-year prison sentence, $1M fine under proposed US bill

The U.S. government is ramping up its efforts to curb China’s influence in artificial intelligence, and a newly introduced bill is pushing the limits of AI regulation. 

Sen. Josh Hawley (R-MO) proposed legislation last week that would make it illegal for Americans to use, import, or develop Chinese AI technologies, including the emerging chatbot DeepSeek.

If passed, the bill would impose some of the strictest penalties ever associated with technology restrictions. Individuals caught violating the ban could face up to 20 years in prison, while corporations could be fined up to $100 million. 

The measure signals escalating tensions between the U.S. and China as both nations race for AI dominance.

Why DeepSeek is under scrutiny

The backstory:

DeepSeek, a powerful AI model developed in China, has recently drawn attention for its ability to match the capabilities of leading U.S. chatbots while using fewer computing resources. This efficiency has raised alarms in Washington, where lawmakers worry that American companies could struggle to compete.

Beyond economic concerns, some policymakers argue that China’s AI progress could enhance its military and surveillance capabilities. The rise of DeepSeek has been likened to the TikTok controversy, in which lawmakers debated banning the Chinese-owned app over data privacy and national security concerns.

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Sen. Elizabeth Warren (D-MA) and Sen. Hawley have been vocal critics of previous administrations' handling of AI policy. In a joint statement last year, they criticized the slow pace of AI regulations and called for tighter restrictions on China’s access to cutting-edge technology.

What penalties would violators face?

By the numbers:

• Individuals found violating the proposed ban could face up to 20 years in prison.
• Companies using or importing Chinese AI could be fined up to $100 million.
• The bill also seeks to block AI-related exports and imports between the U.S. and China.

FILE - In this photo illustration, the DeepSeek app is displayed on an iPhone screen on January 27, 2025 in San Anselmo, California.  (Photo Illustration by Justin Sullivan/Getty Images)

If the bill passes, it would mark one of the harshest tech restrictions ever imposed on foreign AI. Critics argue that the penalties are severe and could create unintended consequences for researchers and businesses relying on global AI models.

How U.S. tech companies are reacting

What they're saying:

The bill’s introduction coincided with a $1 trillion stock market selloff, with companies like Nvidia—a leader in AI chip manufacturing—experiencing historic losses. Some fear that escalating restrictions on AI could disrupt the industry and put American companies at a disadvantage.

Last month, Nvidia CEO Jensen Huang met with President Donald Trump last Friday to discuss the role of AI in maintaining U.S. technological leadership. While Trump did not disclose details of their conversation, he called it a "good meeting" but hinted at uncertainty over future AI regulations.

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Tech leaders are closely monitoring the bill’s progress, concerned that broad AI restrictions could stifle innovation and slow the growth of American AI startups.

Will the bill pass?

What's next:

Although the bill has been tabled for now, its introduction highlights the growing push for AI regulation targeting China. The proposed restrictions reflect the increasing bipartisan concern over AI security risks and economic competition.

Though Hawley’s bill may not pass in its current form, the introduction of the bill indicates that Congress could bring forward more AI restrictions in the coming months. Whether or not DeepSeek will be formally banned, the debate over China’s role in AI is far from over.