DeepSeek: AI Game-Changer or Data Privacy Nightmare?

DeepSeek, the Chinese AI upstart, is making waves—but not the kind it probably hoped for. While some see it as a revolutionary force in AI, others suspect it’s part of a hedge fund’s elaborate scheme to short tech giants like Nvidia. Whatever the truth, one thing is clear: DeepSeek is now under the microscope of data protection watchdogs in Europe.

Ireland and Italy Strike First

In a double whammy, both Ireland and Italy have sent formal requests to DeepSeek, demanding answers on how it handles user data. The Irish Data Protection Commission (DPC) confirmed to TechCrunch that it’s seeking details on how DeepSeek processes data for Irish citizens. Meanwhile, Italy’s data watchdog has gone a step further, warning that “the data of millions of Italians is at risk.”

“A rischio i dati di milioni di persone in Italia.”

Italian Data Protection Authority

DeepSeek has 20 days to respond, but the clock is ticking. And the stakes? Sky-high. The company’s mobile app has already been yanked from Italian app stores, signaling that regulators aren’t playing games.

Why the Heat?

DeepSeek’s privacy policy reveals that all data collected is stored in China, raising red flags for European regulators. While the company claims it complies with local data protection laws, Euroconsumers—a coalition of European consumer groups—isn’t buying it. They’ve filed a complaint with the Italian DPA, demanding clarity on:

• What personal data is collected
• How it’s used to train AI systems
• Whether web scraping is involved
• How minors’ data is protected (spoiler: it’s not)

The European Commission Weighs In

At a recent press conference, the European Commission addressed the DeepSeek controversy head-on. Thomas Regnier, spokesperson for Tech Sovereignty, emphasized that “services offered in Europe will respect our rules.” But when pressed on whether DeepSeek complies with GDPR, he remained tight-lipped.

“Our framework is solid enough to tackle potential issues if they are here.”

Thomas Regnier, European Commission

Copyright Concerns Loom

Beyond data privacy, DeepSeek faces scrutiny over its training methods. Microsoft and OpenAI have hinted that DeepSeek’s AI might be trained on “distillations” of their proprietary models. If true, this could spark a legal firestorm over intellectual property rights—a twist of irony given the ongoing debates around AI and copyright.

What’s Next?

For now, DeepSeek remains operational in Italy—just not on app stores. But with regulators circling and questions mounting, the company’s future in Europe hangs in the balance. Will DeepSeek rise to the challenge, or will it become the next cautionary tale in the AI gold rush? Stay tuned.

Update: DeepSeek’s apps have been pulled from Italian app stores, but the service remains accessible online. We’ve reached out to DeepSeek for comment and will update this story as more details emerge.