Taiwanese official agencies are not permitted to use DeepSeek's chatbot owing to security concerns, according to the island's Ministry of Digital Affairs.

"The Ministry of Digital Affairs, for national information security reasons, released a special warning for the governmental bodies and critical infrastructure facilities on the necessity to restrict the usage of DeepSeek AI," the Ministry's statement stated.

The Ministry also stated that the government has taken steps to avoid personal data leaks through the software.

According to the statement, DeepSeek AI is Chinese and may involve various data security issues, as well as cross-border transfers and information, thus it has been added to the list of "products, which threaten the information security" of Taiwan.

DeepSeek has shaken global technology markets after unveiling a revolutionary AI model that delivers powerful performance while operating on less-advanced chips, challenging the high-cost infrastructure central to US tech firms like Nvidia. This breakthrough has been widely regarded as a game-changer, showcasing that cutting-edge AI can be achieved without heavy reliance on top-tier hardware.

Amid the rising competition, OpenAI, the creator of ChatGPT, is aiming to raise $40 billion in a new funding round that would boost its valuation to a remarkable $340 billion, according to a report from the Wall Street Journal.

Japan’s SoftBank is leading the investment, with discussions underway for a $15-25 billion stake, which would make it OpenAI’s largest financial backer. 

SoftBank's involvement was first reported by the Financial Times. The funding round follows a previous round just three months ago, which valued OpenAI at $157 billion, signaling an unprecedented doubling of its valuation in a short period—an indicator of the massive investment required to build cutting-edge AI models and infrastructure.

OpenAI and SoftBank are part of the Stargate initiative, a $500 billion project led by US President Donald Trump aimed at advancing AI infrastructure. OpenAI plans to use part of the new funds to fulfill its $18 billion commitment to the Stargate project. SoftBank is also expected to contribute more than $15 billion to the initiative, with the total investment in the partnership possibly exceeding $40 billion.

SoftBank's stock rose 3% in Tokyo trading following the announcement. Despite early successes with investments in Yahoo! and Alibaba, SoftBank has faced challenges in other ventures. The company’s pivot into AI is bolstered by its stake in chip designer Arm.