DeepSeek Faces Global Crackdown Over Data Privacy Concerns

DeepSeek, the Chinese artificial intelligence company that recently launched its DeepSeek-R1 model, is under fire from multiple governments over data privacy and security concerns. Despite its rapid success as a cost-effective alternative to American AI models, the company is now facing a series of investigations that could derail its global expansion

Italy has taken the most aggressive stance, blocking access to DeepSeek while its Data Protection Authority examines how the company collects, processes, and stores user data. Regulators are particularly concerned that personal information may be stored on Chinese servers without proper disclosure.

This scrutiny is spreading beyond Italy, with Taiwan warning government officials against using the AI model due to fears of data leakage. South Korea’s Personal Information Protection Commission has also launched an inquiry into DeepSeek’s handling of user data, while France, Belgium, and Ireland are preparing their own investigations into potential privacy violations.

US Investigates DeepSeek’s Use of Restricted American Chips

In the United States, concerns extend beyond data security. The US Commerce Department is investigating whether DeepSeek has been using American-made semiconductor chips, which are subject to export restrictions. If the AI company is found to be in violation, it could face significant legal and industry penalties.

NVIDIA, a key player in AI haradware, saw a dip in its stock price after reports suggested that DeepSeek-R1 could rival its offerings without requiring the same level of investment. In response, NVIDIA CEO Jensen Huang is set to meet with US President Donald Trump to discuss protective measures against foreign competition.

As more governments join the investigation, the future of DeepSeek remains uncertain. While the company’s AI technology has impressed many, its data privacy practices are now under the microscope. For users concerned about their personal information, steering clear of AI apps linked to DeepSeek may be the safest option—at least for now.