Elon Musk Reportedly Exerts Influence Over U.S. Government Agencies

Washington, D.C. — In a shocking turn of events, Elon Musk and his associates are said to be taking control of key operations within several U.S. government agencies, including the Office of Personnel Management, the Treasury Department, and the General Services Administration (GSA). This situation reflects Musk’s disruptive approach, similar to his management style after acquiring Twitter.

Tensions Rise in the Treasury Department

According to The Washington Post, the Treasury Department’s highest-ranking career official is stepping down after a “clash” with members of Musk’s so-called Department of Government Efficiency (DOGE). The disagreement reportedly revolves around “access to sensitive payment systems” that manage over $6 trillion annually, funding essential programs like Social Security and Medicare.

Since the November election, DOGE officials have been pushing to gain access to these critical systems. The Trump administration has also been exploring ways to halt federal funding, enacting a controversial spending freeze that legal experts argue could violate the Constitution.

Civil Servants Locked Out

Reuters reports that Musk’s aides have locked career civil servants out of vital computer systems containing the personal data of millions of federal employees. Leaked documents obtained by Wired indicate that Musk’s team has also taken control of the General Services Administration, which manages federal offices and technological infrastructure.

Tech Scrutiny and Employee Exodus

Across various government departments, tech employees are reportedly being subjected to intense code reviews and audits led by Musk’s team, as per Wired. Furthermore, a recent government-wide email believed to have Musk’s influence offered federal employees the option to resign, reflecting the chaotic restructuring seen during Musk’s Twitter takeover.

From Advisory Role to Direct Control

Initially, DOGE was created by Donald Trump as an external advisory group meant to recommend federal spending cuts. However, this purpose shifted significantly after Trump’s inauguration. He signed an executive order renaming the U.S. Digital Service to the U.S. DOGE Service, effectively embedding Musk within the federal government.

Reports suggest Musk now has an office in the West Wing of the White House and has even been seen sleeping at the DOGE headquarters, showcasing his hands-on management style.

A Growing Concern Over Federal Autonomy

This unprecedented influence raises serious concerns about federal agency independence and potential conflicts of interest. Musk’s deep involvement in government operations blurs the lines between private sector influence and public governance.

Further updates are expected as more details emerge regarding Musk’s role and the broader implications for U.S. governmental operations.

This article has been updated to include new reports from Wired confirming that Elon Musk’s staff have also infiltrated the General Services Administration.

Read More: Italy Bans DeepSeek But Banning AI Model is Harder Than You Think

US Authorities Investigate Whether DeepSeek Used Banned Nvidia AI Chips 

The U.S., with its God complex and a dogmatic perception regarding other nations, is quite a paradoxical situation. A source with knowledge of the situation revealed that the U.S Department of Commerce is investigating whether DeepSeek, the Chinese firm responsible for the AI model’s success in China, has been using U.S. chips that are prohibited for shipment to China. When your AI model becomes the talk of the tech world and wipes $1 trillion off U.S stocks, someone with a God complex can have suspicions that it might have a little ‘forbidden fruit’ involved.

U.S Dominance in AI:

Last week, China’s DeepSeek unveiled a free assistant that uses less data and is priced below other U.S models. In just a few days, it became the most downloaded app in Apple’s App Store and raised concerns about the United States’ dominance in AI, leading to a major drop in U.S tech stocks, costing almost $1 trillion in market value. The current exports of the A100 and H100 models are restricted from China, as Nvidia’s advanced artificial intelligence chips are designed to prevent them from competing with other nations regarding AI technology for market share. 

Yet, as per the source, organizations that are smuggling AI chips to China have been observed in countries like Malaysia, Singapore, and the United Arab Emirates. DeepSeek and the Commerce Department failed to respond immediately when questioned on this matter.

A spokesperson for Nvidia explained that many of Nvidia’s clients have established businesses in Singapore and overseas, while others may also be involved in shipping their products to the U.S. and Western countries. Nvidia said, “We insist that our partners comply with all applicable laws, and if we receive any information to the contrary, act accordingly.” However, previous reports by DeepSeek suggest that it used Nvidia’s H800 chips, which were available to purchase legally before the latest U.S. restrictions were enacted in 2023.

AI Chips Supply Chain at Risk:

DeepSeek really went from a promising AI startup to a suspect involved in smuggling, standing in the courts of the U.S. Nvidia’s H20s, which are less powerful and available for purchase on DeepSeek, are still legal to ship to China, as the U.S. contemplated controlling them during the Biden presidency, and this issue is being discussed by Trump’s new officials. Dario Amodei, the CEO of Anthropic AI firm stated, “it appears that a substantial fraction of DeepSeek’s AI chip fleet consists of chips that haven’t been banned (but should be), chips that were shipped before they were banned; and some that seem very likely to have been smuggled.”

This implies that a significant portion of DeepSeek’s AI chip inventory is made up of chips that were either shipped to the country before the ban or chips that are not banned but should be, and others might be smuggled. The ban on exporting AI chips to China has been imposed by the U.S government, and it is now considering expanding these restrictions to other nations. The analysis of DeepSeek’s chip usage reveals the rising tensions between nations and mutual trust surrounding AI technology and chip supply chains. 

Read More: Italy Bans DeepSeek But Banning AI Model is Harder Than You Think

Italy Bans DeepSeek But Banning AI Model is Harder Than You Think

Italy remains firm on their ‘no-nonsense’ agenda. You will not find DeepSeek AI chatbot on Apple’s App Store and Google Store in Italy. 

How does it go from popularity to banning?

The Italian DPA was acting based on a complaint filed by consumer coalition group Euroconsumers over DeepSeek’s personal data handling practices. DeepSeek has been given 20 days to respond as the watchdog is investigating DeepSeek’s storage of user data on servers in China, which violates Euroconsumers data protection laws.

What is the actual issue behind?

  • Data privacy: User data is stored in China, raising fears of government access.
  • Cybersecurity: Nation’s safety above all technology. The U.S. Navy has warned its personnel against using DeepSeek for both work and personal use to prevent any kind of Cybercrime.
  • Biasness: DeepSeek with its open source and free of cost agenda can be manipulated and censored to give biased information.

Nation’s safety and security above all

U.S suspects DeepSeek’s AI model was trained using U.S. AI models (like ChatGPT) through a technique called “distillation” . Distillation is a process where a newer AI model learns from an existing, more powerful AI model. It provides an edge to developers so that they can transfer knowledge without investing a single penny in expensive computing resources. The U.S government consistently evaluates that it might have a harmful effect to national security as well as AI dominance.

Is it really banned in Italy?

The DeepSeek app is blocked, but Italy users can still download its open-source model and run it locally. They can also access it via Perplexity (third-party platform) which hosts it on servers in the U.S and EU. (outside of china)

Why Banning DeepSeek is difficult?

Banning Deepseek is difficult because of the following reasons: 

  • AI distillation: It’s Hard to detect when data is extracted from AI models like ChatGPT.
  • Open-source models can be downloaded freely (that makes their enforcement difficult)

What are Netizens saying?

It Seems DeepSeek is getting blocked in Italy. Remember they also blocked ChatGPT as well in the beginning for a short amount. Will this trend continue or is this a nothing burger”.Dominik Filkus on his recent tweet on X.

Is there any solution?

Well, of now. Blocking all Chinese IP addresses can be an instant solution. (But you never know) users could still find ways to bypass these restrictions. Italy. U.S. or another country on their way to go against DeepSeek. DeepSeek app removal is never the ‘ultimate’ solution. Proper guidelines and law enforcement can be.

Will DeepSeek be able to tackle challenges like these? Stay Tune to learn more!

Read More: Impossible to Block Deepseek? Why Stopping China’s AI Growth is Harder Than Ever for OpenAI