U.S. Senators Call for Probe into Data Security Risks of Chinese AI Model DeepSeek

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A group of seven Republican U.S. senators led by Ted Budd urged the Commerce Department on Tuesday to investigate potential data security risks associated with Chinese open-source AI models such as DeepSeek.

The senators—including Jon Husted, Todd Young, John Cornyn, John Curtis, Bill Cassidy, and Marsha Blackburn—requested an assessment of whether applications using DeepSeek collect data that is transmitted back to Chinese servers, and if these AI models are sharing American personal or corporate information with China’s military or military-linked companies.

Their letter also sought information on any improper access by Chinese open-source models to export-controlled semiconductors or breaches of usage terms of U.S. AI models aimed at enhancing Chinese AI capabilities.

Bipartisan legislation has been proposed to ban DeepSeek’s use on federal government devices and networks, as well as prohibit its use by federal contractors in government projects.

Commerce Secretary Howard Lutnick stated in January that DeepSeek appeared to have misappropriated U.S. AI technology and promised to enforce restrictions. The Commerce Department did not immediately respond to requests for comment.

In June, Reuters reported that DeepSeek was assisting China’s military and intelligence services and was attempting to use Southeast Asian shell companies to obtain advanced semiconductors barred from shipment to China under U.S. export rules.

These developments underscore growing skepticism in Washington over DeepSeek’s rapid rise, with officials suggesting the Chinese firm’s AI prowess heavily depends on U.S. technology.

Based in Hangzhou, DeepSeek shocked the tech world in January by claiming its AI reasoning models matched or outperformed leading U.S. models at a fraction of the cost.

Former X CEO Linda Yaccarino Takes Helm at GLP-1 Telehealth Startup eMed

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Linda Yaccarino, who recently stepped down as CEO of social media platform X, has been appointed CEO of eMed Population Health, a Miami-based telehealth startup focused on GLP-1 weight loss drugs.

Yaccarino, known for her extensive advertising and digital revenue expertise, led X through a challenging period marked by advertiser skepticism amid controversial content under Elon Musk’s ownership. She previously modernized NBCUniversal’s global advertising business over a decade.

“I brought X through a tremendous growth trajectory, and I’m proud of what we accomplished,” Yaccarino said in a Reuters interview. “Now, it’s the perfect time for a new challenge.”

Founded in 2020, eMed partners with employers and government payers to manage the use of GLP-1 drugs, a class of obesity and diabetes medications whose high costs have limited insurance coverage. Yaccarino emphasized the company’s vision to transform the weight-loss category at a critical moment.

The telehealth sector focused on GLP-1 drugs is growing rapidly but faces increased scrutiny over safety, marketing, and regulatory challenges. Industry experts note Yaccarino’s digital marketing skills will be valuable as the sector shifts toward a direct-to-consumer model.

eMed claims its platform can reduce weight loss program costs by up to 50%, offering live, on-demand care without the need for appointments. The company initially gained traction through at-home COVID-19 testing during the pandemic and later expanded into diagnostics for other illnesses but has since refocused on telehealth services.

Currently, eMed employs between 51 and 200 people.

AI Startup Clay Valued at $3.1 Billion in Latest Fundraise Amid AI Investment Boom

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AI startup Clay’s valuation more than doubled in roughly three months, reaching $3.1 billion in its latest funding round as investor appetite for artificial intelligence companies remains strong.

Clay offers an AI-driven platform designed to automate sales and marketing operations, with notable clients including Google and Reddit. The company raised $100 million in this round, led by CapitalG, Alphabet’s (GOOGL.O) independent growth fund. Around three months ago, Clay’s valuation stood at $1.5 billion, based on an employee tender offer.

The surge in Clay’s valuation coincides with a broader surge in dealmaking, with investment activity in AI hitting its highest level since the pandemic-era peak in 2021. Big Tech’s recent earnings reports highlighted AI as a key growth driver across internet search, digital advertising, and cloud services.

Clay plans to use the new funding to accelerate product development. Co-founder Kareem Amin told Reuters that upcoming tools will enable clients to analyze data such as sales tickets and video calls with potential customers. The company is also developing a “signals” product aimed at providing sales representatives with insights on the optimal timing to contact potential leads.

Existing investors including Sequoia, Meritech Capital, and First Round Capital also participated in the round.