 "The United States has also entered the fray, with the US Commerce Department reportedly investigating whether DeepSeek has been using American-made chips, which are restricted from being shipped to China. Image Credit: Reuters")
DeepSeek, the Chinese AI company that recently released its highly competitive DeepSeek-R1 model, is facing increasing scrutiny from governments around the world.
The model, which has been praised for its ability to rival American AI offerings at a fraction of the cost, is now under investigation by multiple countries due to concerns over data privacy and security practices.
Just one week after its launch, DeepSeek’s rapid rise has attracted the attention of regulators from Italy, Taiwan, South Korea, France, Belgium, and even the United States.
Italy leads the charge in investigating data privacy issues
Italy was the first to act, with its data privacy watchdog announcing a probe into DeepSeek’s handling of user data. The Italian Data Protection Authority issued a restraining order against both Hangzhou DeepSeek Artificial Intelligence and Beijing DeepSeek Artificial Intelligence, the two companies behind the AI model.
The watchdog raised alarms about DeepSeek’s failure to disclose what personal information it collects, how it processes that data, and whether it stores information on servers in China. As a result, access to DeepSeek has been blocked in Italy while the investigation is ongoing. The move is the first in a wave of scrutiny targeting the company’s data practices.
Growing concerns from other countries
Italy is not alone in its concerns. Taiwan’s digital ministry has advised government officials to refrain from using DeepSeek’s model, citing fears of potential data leakage. South Korea’s Personal Information Protection Commission has announced plans to question the company regarding its management of user data.
Meanwhile, France’s National Commission for Information Technology and Civil Liberties is preparing to launch its own investigation into DeepSeek’s data protection practices. Belgium is examining potential violations of the General Data Protection Regulation (GDPR), and Ireland has requested more information about how the company handles personal data. These investigations highlight the growing global concerns surrounding DeepSeek’s operations.
US involvement and the potential impact on American companies
The United States has also entered the fray, with the US Commerce Department reportedly investigating whether DeepSeek has been using American-made chips, which are restricted from being shipped to China.
This investigation is part of broader concerns that DeepSeek could undermine the profitability of US firms like NVIDIA, which saw a dip in its stock price when it was revealed that DeepSeek’s model is just as functional without the need for billions of dollars in investment.
NVIDIA CEO Jensen Huang is expected to meet with US President Donald Trump to discuss how to protect the company’s interests against foreign competition like DeepSeek.
Data privacy concerns and security risks
The concerns over DeepSeek are not just about its AI capabilities but also about the company’s data privacy practices. A recent report by security firm Wiz Research revealed that a DeepSeek database was left exposed, compromising chat histories and other sensitive information.
Furthermore, Wired reported that DeepSeek’s app has been sending US user data to servers in China, raising alarms over the safety of personal information. With so many countries now investigating the company, it remains unclear what the future holds for DeepSeek and its growing influence in the AI industry.
For consumers worried about their data privacy, avoiding AI apps, particularly those from Chinese firms, might be a wise choice for now.