Data privacy concerns surrounding the rise of Chinese AI contender DeepSeek have ignited a global investigation. Countries including South Korea, Ireland, Italy, France, and Australia are demanding transparency from DeepSeek regarding its handling of user data. DeepSeek's launch of its R1 chatbot, claiming parity with US-based AI leaders at a fraction of the cost, has rattled the tech world and prompted intense scrutiny of its data practices.
Data watchdogs in South Korea and Ireland announced on Friday that they would request clarifications from Chinese AI startup DeepSeek regarding its management of user personal information. This move comes as governments worldwide are scrutinizing the service following its launch of the R1 chatbot. DeepSeek asserts that its R1 chatbot matches the capabilities of leading US-based AI companies at a significantly reduced cost.
This claim has triggered a downturn in tech giants, with Nvidia experiencing an 17 percent drop on Monday, and raised questions about the substantial investments made in AI over the past few years.Countries including South Korea, Ireland, France, Australia, and Italy now have concerns about DeepSeek's data handling practices. South Korea's Personal Information Protection Commission stated their intention to submit a written request to DeepSeek on Friday seeking information about their personal data management procedures. Ireland's Data Protection Commission (DPC) also announced its request for information regarding data processing related to Irish data subjects handled by DeepSeek. The DPC holds a prominent position as a European tech watchdog due to the numerous major companies establishing their EU headquarters in Ireland, attracted by Dublin's favorable tax incentives.Earlier this week, Italy initiated an investigation into the R1 model and prohibited its processing of Italian user data. The Italian Data Protection Agency is demanding details about the information used to train DeepSeek's AI system and, if data is scraped from the internet, how users are informed about this data processing. France's data protection watchdog, CNIL, also announced its intention to question DeepSeek about its chatbot to better understand its functionality and potential data protection risks. Australia's science minister, Ed Husic, has publicly expressed privacy concerns regarding the company's AI service, urging users to exercise caution before downloading it. Husic emphasized the need for thorough examination of various aspects, including data and privacy management, stating that 'These type of issues need to be weighed up carefully.' The Italian watchdog previously issued a fine of 15 million euros ($15.6 million) to OpenAI in December 2023 for its use of personal data by the popular ChatGPT chatbot, though OpenAI has indicated its intention to appeal. Italy also temporarily blocked ChatGPT in March 2023 due to privacy concerns, marking the first Western country to take such action. DeepSeek claims to have utilized less advanced H800 chips, permitted for sale to China until 2023 under US export controls, to power its large learning model. South Korean chip giants Samsung Electronics and SK hynix are key suppliers of advanced chips used in AI servers. Concerns regarding DeepSeek's impact have negatively affected stocks in Seoul upon the market's reopening after an extended break on Friday. Samsung experienced a decline of over two percent, while SK hynix plunged almost 12 percent at one point
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