Regulators in South Korea and Ireland are demanding answers from Chinese AI startup DeepSeek about how it handles users’ personal data.
This comes as global concerns over the company’s practices continue to grow.
DeepSeek’s AI Raises Questions Worldwide
DeepSeek recently launched its R1 chatbot, claiming it can compete with top AI models in the U.S. but at a much lower cost.
However, this breakthrough has raised alarms among regulators in multiple countries, including South Korea, Ireland, France, Australia, and Italy.
An official from South Korea’s Personal Information Protection Commission told AFP that they plan to send a formal request to DeepSeek as soon as Friday to clarify how it manages personal data.
Similarly, Ireland’s Data Protection Commission (DPC) has asked for details on DeepSeek’s data processing in relation to Irish users.
The DPC plays a key role in tech regulation across Europe since many major companies have their EU headquarters in Ireland.
Italy Takes Strong Action
Earlier this week, Italy took a firm stance by launching an investigation into DeepSeek’s R1 chatbot and blocking it from processing data from Italian users.
The country’s data protection agency wants to know what data DeepSeek’s AI is trained on and whether it collects information from the internet without properly informing users.
France’s data watchdog, CNIL, also plans to question DeepSeek about its chatbot’s operations and potential privacy risks.
Meanwhile, Australia’s Science Minister, Ed Husic, has warned users to be cautious before using the service, stressing the need for transparency in data and privacy management.
AI Privacy Concerns Continue to Grow
Privacy concerns in the AI industry are not new.
In December, Italy fined OpenAI €15 million ($15.6 million) for improper data use in its ChatGPT model.
Italy had also temporarily banned ChatGPT in March 2023, becoming the first Western country to do so over privacy issues.
DeepSeek’s AI Hardware and Market Impact
DeepSeek has built its AI model using H800 chips, which were still allowed for sale to China until 2023 under U.S. export regulations.
Meanwhile, South Korea’s tech giants Samsung and SK Hynix, which supply advanced AI chips, saw their stock prices drop following concerns over DeepSeek’s rise.
Samsung fell over 2%, and SK Hynix plunged nearly 12% at one point.
Despite the concerns, some industry experts see DeepSeek’s emergence as a positive development, adding more competition to the AI market.
Analysts believe this shake-up could lead to innovation and better options for consumers.
As investigations unfold, the global AI landscape continues to evolve, with governments and regulators keeping a close watch on data privacy and ethical AI practices.
