Texas is going after China guns blazing. Reportedly, Texas Governor Greg Abbott issued an order banning the Chinese app DeepSeek. Abbott cited concerns about the Chinese Communist Party’s potential access to sensitive data of Americans through the AI app.
“Texas will not allow the Chinese Communist Party to infiltrate our state’s critical infrastructure through data-harvesting AI and social media apps,” Abbott stated.
READ: China disrupts AI market with DeepSeek: A better, cheaper version of ChatGPT? (January 27, 2025)
DeepSeek made waves in America when it was launched last week, especially as the company claimed that their new model was built within a budget of $6 million, which is much cheaper than the cost of AI development in the western market.
It is interesting to note that Elon Musk has quite the presence in Texas. Tesla’s Gigafactory, located in Austin, plays a key role in producing electric vehicles, including the Cybertruck, and is central to the company’s plans for scaling production. SpaceX also has a major facility in Boca Chica, near Brownsville, where it tests and launches its Starship rockets. This site is crucial to Musk’s vision for space exploration and Mars colonization.
Additionally, Musk’s The Boring Company is working on underground transportation projects in Texas, aiming to alleviate traffic congestion in cities like Austin and Dallas. Musk himself moved to Texas in 2020, citing dissatisfaction with California’s regulatory environment and taxes. This shift has been seen as part of his broader strategy to take advantage of Texas’ business-friendly atmosphere.
Musk’s ventures in Texas have had a major impact on the local economy and have positioned the state as a key hub for innovation in electric vehicles, space exploration, and transportation. Through his companies, Musk has brought attention to Texas as a leader in advanced technologies and sustainability.
READ: Apple CEO comes out in support and praise for DeepSeek (January 31, 2025)
This latest ban may seem co-incidental as Elon Musk is one of the backers of OpenAI, DeepSeek’s biggest competitor in the US. Abbott’s statement said, “Texas will continue to protect and defend our state from hostile foreign actors.”