China seems to believe that its homegrown AI startup, DeepSeek, has the potential to become a significant tech success story for the nation.

Following DeepSeek’s rapid ascent to fame in January with the launch of its open “reasoning” model, R1, the company is now subject to stricter, government-influenced regulations, as reported by The Information. The company’s employees are facing restrictions on international travel, and the Chinese government is involved in vetting potential investors, according to The Information.

To enforce these travel restrictions, DeepSeek’s parent company, the quantitative hedge fund High-Flyer, is holding the passports of certain staff members.

These developments come just a few weeks after reports emerged that the Chinese government was advising AI researchers and entrepreneurs to avoid traveling to the U.S., citing concerns over the potential loss of trade secrets.

TechCrunch has contacted DeepSeek for a comment on the matter.