BYD’s Partnership with DeepSeek Sparks Innovation and Espionage Fears

BYD, China’s largest electric vehicle (EV) manufacturer, announced on February 10 its plan to integrate DeepSeek’s artificial intelligence (AI) technology into its vehicles.

The move, aimed at enhancing its “God’s Eye” driver-assistance system, underscores BYD’s ambition to compete with Tesla and other domestic rivals in China’s booming EV market.

However, revelations about DeepSeek’s covert data-sharing practices have cast a shadow over this technological leap. Feroot Security recently exposed that DeepSeek’s AI platform transmits user credentials, device fingerprints, and behavioral data.

This data is sent directly to servers tied to China Mobile’s CMPassport.com. This state-controlled telecom company operates under Chinese intelligence laws that mandate cooperation with government surveillance.

Researchers decrypted DeepSeek’s login systems, uncovering intentional code obfuscation designed to mask these data transfers. The app also creates unique digital fingerprints by combining device details like screen resolution and browser plugins, enabling tracking even after users exit the platform.

These findings have triggered swift international backlash. Italy blocked DeepSeek entirely and launched an investigation into its compliance with GDPR regulations. Taiwan banned the app across public sector organizations, while Australia prohibited its use on government systems.

This followed alarming intelligence assessments. The U.S. Navy also barred personnel from using the app, citing espionage risks. South Korea imposed temporary restrictions on government devices, and India advised against using DeepSeek on sensitive platforms.

BYD’s Ambitious Push for Intelligent Driving

Despite these controversies, BYD is pressing forward with its plan to make “God’s Eye” standard in vehicles priced above 100,000 yuan ($13,688) and available in models as affordable as 69,800 yuan ($9,550).

The system offers features like adaptive cruise control and automated braking, aiming to democratize intelligent driving. BYD Chairman Wang Chuanfu called 2025 “the first year of intelligent driving for everyone.”

While BYD sold over 4 million vehicles last year and plans to deliver 6 million annually by 2025, its reliance on DeepSeek technology raises questions about user privacy and security.

Critics argue that integrating AI linked to Chinese surveillance laws could deter global buyers and invite regulatory scrutiny. As BYD seeks to redefine affordability in smart EVs, concerns over data misuse may overshadow its technological achievements.