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Florida state CFO Jimmy Patronis issued a directive Thursday to the state’s Department of Financial Services banning the use of DeepSeek, a Chinese generative AI application, within the department, arguing that the application “presents a major national security risk,” according to a press release.
The directive bars both the use of DeepSeek within the department, as well as prohibiting access to the DeepSeek application on any Department-issued device, Patronis said in a statement included in the release.
The CFO will “not allow sensitive Department information to be compromised through a Chinese AI app that can harm Floridians,” he said in the press release. “President Trump said DeepSeek was a wake-up call, and he’s absolutely right.”
The Thursday directive follows similar efforts by lawmakers to bar DeepSeek on government devices, and comes as both the U.S. and China vie for the top position in the budding AI space.
“DeepSeek user data is collected and sent back to China, including information provided during sign-up, queries, chat histories, and uploaded files,” Melissa Ruzzi, director, artificial intelligence at security company AppOmni told CFO Dive. “This means the Chinese government could potentially use DeepSeek’s AI models to spy on American citizens, acquire proprietary secrets, and conduct influence campaigns.”
Furthermore, as the data is kept within China, it may also fail to meet data requirements in other countries, such as the European Union’s General Data Protection Regulation, Ruzzi said — a stumbling block hit by ChatGPT OpenAI creator last year, which was fined $15 million by Italy for violating GDPR privacy regulations, Reuters reported.
“U.S. companies should carefully consider all risks involved before deciding to use it,” Ruzzi said of DeepSeek. “And the model itself could already be biased to support agendas that could impact how users form opinions.”
The Department of Financial Services did not immediately respond to a request for comment concerning if it currently allows the use of other generative AI tools, such as OpenAI’s ChatGPT solution.
However, the directive comes as President Donald Trump’s administration courts a strong relationship with OpenAI and other AI leaders. The president issued an executive order shortly after his inauguration aimed at “clearing a path for the United States to act decisively to retain global leadership in artificial intelligence,” according to the order.
Following the order, Trump promoted a $500 billion joint venture, known as Stargate, with OpenAI, Oracle and SoftBank aimed at creating AI infrastructure within the country, the Associated Press reported.
However, the swift rise in popularity of China’s DeepSeek generative AI application — which quickly became one of the most highly-downloaded apps following its launch — could potentially represent a large hurdle to jump for both the U.S. government and private business entities as they marshal their plans for AI expansion.
In comments January, Trump praised the low-cost development of DeepSeek — a key factor of the platform’s rapid rise—as a positive for the AI space overall, but noted that should be a “wake up call” for American technology firms, according to a report by CNBC. Later that month, Trump’s “AI Czar” David Sacks said there was “substantial evidence” DeepSeek had stolen data from OpenAI’s ChatGPT model to build out its own pool, following similar comments by OpenAI leadership, according to an AP report earlier this month.
In his Thursday directive, Patronis echoed the ongoing AI tug-of-war between China and America, noting in his statement that “AI can be a huge resource for good, but it can also be a weapon if it’s in the wrong hands. Americans must be protected, and American companies must out-compete China.”
The directive is one of several recent actions taken by Patronis, an avid Trump supporter, as he gears up to run for a seat in Congress that could potentially shore up thin margins in the Republican-controlled House of Representatives. Among other recent steps, Patronis issued an official letter to Elon Musk, asking the Department of Government Efficiency to audit federal grants to universities for what it termed “censorship funding,” described as grants from the U.S. Department of Defense and government entities that partner with USAID, such as the National Science Foundation.
A long-time figure in Florida politics, Patronis’ background is more akin to that of a career politician than a traditional finance leader. The CFO, who is not a certified public accountant, earned a bachelor’s degree in political science from Florida State University as well as an associate’s degree in restaurant management from Gulf Coast Community College, according to a biography posted on the My Florida CFO website.
Patronis previously served a term in the state’s House of Representatives and was appointed to the Florida Elections Committee in 2017. That same year, he was tapped by former Florida Governor Rick Scott to serve as the state’s CFO. He also serves as Florida’s fire marshal and a member of the Florida Cabinet, which is comprised of the CFO, Attorney General and Commissioner of Agriculture and Consumer Services.
Both Patronis and another Republican endorsed by Trump, Randy Fine, won special election primaries for Florida’s House of Representative congressional seats in January, according to a report by Politico.
The CFO received an endorsement from Trump to run for the seat as a replacement for Representative Matt Gaetz — who resigned last year — shortly after the November presidential election. In a post that month on Truth Social, Trump described Patronis as a “wonderful friend to me, and to MAGA,” and said that if he decided to enter the race, “Jimmy Patronis has my Complete and Total Endorsement. RUN, JIMMY, RUN!
Editor’s note: CFO Dive Reporter Alexei Alexis contributed to this article.
