After all the hair-on-fire news stories of the past week about the new, cheaper AI model out of China, things are now starting to calm down a bit. Maybe the sky isn’t falling quite yet? We’re starting to see some more common-sense analysis of the situation. And, yes, even the stocks of Nvidia and other AI stalwarts are starting to rebound.

Early on, we had some takes like this one, from AI Weekly, that made it sound like things would never be the same: “The implications for enterprise AI strategies are profound: With reduced costs and open access, organizations now have an alternative to costly proprietary models like OpenAI’s. DeepSeek’s release could democratize access to cutting-edge AI capabilities, enabling smaller organizations to compete effectively in the AI arms race.”

Even the Wall Street Journal weighed in with this headline: “U.S. Businesses Already Love DeepSeek. The Chinese company’s new model promises to lower the cost of AI for enterprises”

But hold on, we say — especially all you chief information officers in U.S. enterprises (large or small). Don’t get too enthused just yet. Consider the advice in this piece published January 30 in CIO DIVE: “What CIOs Should Know About DeepSeek.”

Here’s a summary of the piece (AI-generated, of course, to save you a long read):

DeepSeek, a Chinese AI startup, has unveiled its R1 model, asserting performance comparable to leading U.S. AI models at a reduced training cost. Although it does not represent groundbreaking advancements, its efficiency challenges conventional assumptions regarding AI development expenses. Experts, such as Gartner’s Haritha Khandabattu, advise CIOs to exercise caution before making hasty decisions.

Security and privacy concerns have arisen due to reported vulnerabilities in DeepSeek’s database, potentially exposing chat histories and sensitive data. Furthermore, its privacy policy raises concerns about potential data usage practices that may not align with enterprise security standards.

For CIOs contemplating adoption, it is imperative to evaluate governance frameworks, ensure compliance with security protocols, and implement measures to mitigate risks associated with unauthorized AI tool usage by employees, commonly referred to as “shadow AI.”

While DeepSeek’s model presents an opportunity to reassess AI strategies, businesses must prioritize security, transparency, and proper governance before integrating it into their operations.

We concur. Slow down, don’t over-react. Smile! Let calmheaded-ness prevail.