China is reportedly keeping DeepSeek under close watch

China seems to have high hopes for local AI startup DeepSeek, which has quickly gained attention for its innovative “reasoning” model, R1.

Following its rapid rise to fame in January, DeepSeek is now facing stricter government-imposed regulations, with reports indicating limitations on employees’ travel and government involvement in investor screening.

To enforce travel restrictions, DeepSeek’s parent company, High-Flyer, is holding onto certain employees’ passports.

These developments come amidst concerns from the Chinese government about AI researchers and entrepreneurs traveling to the U.S. and potential risks to trade secrets.

DailyTech has reached out to DeepSeek for further information.