DeepSeek: Industry and Science Minister Ed Husic urges caution over downloading Chinese AI app

Federal Industry and Science Minister urged caution over downloading the Chinese-made AI app which has caused a near $1 trillion hit on the stock market.

Federal Industry and Science Minister Ed Husic has issued a warning against downloading Chinese-funded AI app DeepSeek, which created a near $1 trillion hit on US tech stocks on Monday.

The disruptive company has up-ended the tech sector through the release of its R1 AI assistant which rivals ChatGPT and Open AI albeit developed at a fraction of the cost.

US President Donald Trump said the rise of DeepSeek should be a “wake up call” to US tech giants, with China catching up to the US in the AI arms race.

Speaking to ABC, Mr Husic said DeepSeek’s advancements in the field was evidence of China’s “determination in this space”.

Federal Industry and Science Minister Ed Husic urged caution over downloading the Chinese-made AI app DeepSeek. Picture: Justin Sullivan/ Getty Images North America via AFP

He also said there were a lot of questions around the app’s quality of information, and data and privacy management.

“China has been determined since the last decade to be a world leader in artificial intelligence,” he said.

“It doesn’t come as a surprise that they would try to develop a workaround to some of the restrictions that have been placed on them.”

Asked if he would download the app, he urged caution.

“I would be very careful about that,” he said.

“I don’t have TikTok on my government phone. I think these types of issues have got to be weighed up carefully.”

Mr Husic said DeepSeek’s rise was proof of China’s determination to becoming leaders in the AI space. Picture: NewsWire/ Martin Ollman

Earlier on Tuesday, Australia’s incoming Chief Scientist Tony Haymet said DeepSeek was “genuine” and had the power to “change our lives”.

“Certainly, it’s changed the stock market. But it shows you the pace at which innovation and science and technology goes,” he said.

Speaking broadly on AI, Prof Haymet said it represented a “great opportunity” for Australia.

“I think it’s a great export opportunity for Australia because AI needs electricity and most of the world is demanding that we deliver AI with renewable electricity, and Australia is perfectly set up for that,” he said.

“No matter which way we decide to deliver that electricity, we can do it.”

Based in Hangzhou, China, DeepSeek was started in 2023 by Liang Wenfeng who co-founded prominent Chinese hedge fund High-Flyer.

It’s since booted ChatGPT on Apple’s US App Store, and caused a 17 per cent hit to US AI darling and chip giant Nvidia.

Originally published as DeepSeek: Industry and Science Minister Ed Husic urges caution over downloading Chinese AI app