With all the headlines and regulatory action around the world, Sam Berriman takes an in-depth look at DeepSeek and why it is attracting so much attention. Read more here.
If you are short on time and want to understand what has been happening, here is a summary of the main issues:
- DeepSeek's Rise and Innovation: DeepSeek, a Chinese company established by High Flyer, launched its AI Assistant in January 2025, temporarily surpassing OpenAI's ChatGPT in popularity. The R1 model, costing significantly less to train than OpenAI's GPT-4, has caused a stir in the AI industry due to its efficiency and reduced computing resource requirements.
- Data Protection Concerns: Despite technological advancements, DeepSeek has faced immediate scrutiny for its lack of data protection compliance. Italy's Garante requested detailed information on DeepSeek's data collection and processing practices, leading to a temporary ban in Italy due to insufficient responses from the company.
- Global Regulatory Response: Following Italy's lead, other countries including Ireland, Belgium, France, South Korea, the Netherlands and Luxembourg, have initiated investigations or issued warnings regarding DeepSeek's data protection practices. Governments in the UK, US, Taiwan and Australia have also taken measures, with some banning the use of DeepSeek's services on government devices.
- Security Issues: DeepSeek has encountered significant security challenges since the AI Assistant was made available, including an exposed database containing sensitive data and large-scale malicious attacks. These issues have further complicated the company's regulatory and public relations landscape.
- Allegations of IP Infringement: OpenAI has accused DeepSeek of using a technique called distillation to train its models using outputs from OpenAI's models, potentially violating OpenAI's Terms of Use. This allegation, coupled with instances of DeepSeek's AI Assistant mistakenly identifying itself as ChatGPT, adds to the company's legal workload.
So what?
The ongoing investigations and regulatory actions highlight the importance of data protection compliance in AI development. DeepSeek's case serves as a reminder that innovation must be balanced with legal and ethical considerations to avoid regulatory action and ensure sustainable success in the AI industry.
“ The limitation measure - adopted to protect the data of Italian users - follows the communication from the companies received today, the content of which was deemed completely insufficient. Contrary to the Authority's findings, the companies declared that they do not operate in Italy and that European legislation does not apply to them. ”
