Microsoft Bans Employee Use of DeepSeek App Over Data and Propaganda Risks
Microsoft has prohibited its employees from using the DeepSeek AI app, citing serious concerns about data security and potential influence from Chinese government propaganda, according to company president Brad Smith, who testified at a U.S. Senate hearing on May 8, 2025.
“We don’t allow our employees to use the DeepSeek app,” said Smith, referring to the AI platform available on both mobile and desktop.
This is the first time Microsoft has publicly disclosed its internal ban, adding that the app is also excluded from the Windows app store for the same reasons.
Concerns Over Data Storage and Government Access
DeepSeek’s privacy policy confirms it stores user data on servers located in China — making that data subject to Chinese intelligence laws, which require companies to assist government surveillance efforts. Additionally, the AI tool has been flagged for censoring politically sensitive topics and potentially embedding state-aligned narratives.
Despite this stance, Microsoft had earlier offered DeepSeek’s R1 model on its Azure cloud service — a move seen as contradictory by some. However, Microsoft clarified that while the chatbot app itself is banned, the open-source AI model can be hosted independently, allowing users to manage their own data storage.
Microsoft Claims It Modified DeepSeek for Safety
During the hearing, Smith stated that Microsoft had made internal changes to the DeepSeek model when it was added to Azure, eliminating “harmful side effects.” Microsoft did not elaborate further and pointed inquiries back to Smith’s comments.
In an earlier announcement, the company noted that DeepSeek underwent “rigorous red teaming and safety checks” before being made available on Azure’s cloud infrastructure.
App Store Policies Raise Questions
Some analysts have pointed out that DeepSeek is a direct competitor to Microsoft’s own Copilot chatbot, but the company insists its decision was not commercially motivated. Other rival apps like Perplexity are available in the Windows app store, although Google’s Gemini and Chrome browser are notably absent.
As AI competition heats up globally, Microsoft’s decision reflects the growing intersection of tech ethics, national security, and enterprise policy — particularly when it comes to tools with international data dependencies and content control concerns.
