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DeepSeek May Face Further Regulatory Actions, EU Privacy Watchdog Says

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Europe’s privacy watchdog, the European Data Protection Board (EDPB), has indicated that the Chinese AI startup DeepSeek may face additional regulatory actions in the future. This statement comes after national privacy regulators in several European countries raised concerns over DeepSeek’s practices regarding personal data usage.

The EDPB’s announcement followed discussions among national data protection authorities (DPAs) at a monthly meeting on Tuesday. The regulators had already taken steps in Italy, where DeepSeek’s chatbot was blocked due to insufficient transparency regarding its use of personal data. In addition, enforcers in France, the Netherlands, Belgium, Luxembourg, and other nations have questioned DeepSeek about its data collection methods.

“Several DPAs have already started actions vis-a-vis DeepSeek, and there may be further actions in the future,” an EDPB spokesperson confirmed. As a result of these concerns, the EDPB expanded its taskforce, initially focused on Microsoft-backed OpenAI’s ChatGPT, to include DeepSeek. The taskforce was created in April 2023 to promote cooperation and information sharing on AI enforcement actions.

The regulators also emphasized the need for a coordinated response to sensitive matters and have decided to form a quick response team to address urgent issues. Europe’s General Data Protection Regulation (GDPR), which took effect in 2018, remains one of the strictest privacy laws globally, and the region continues to lead efforts in protecting citizens’ privacy rights.

Vance Warns Europeans That Heavy AI Regulations Could Stifle Innovation

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U.S. Vice President JD Vance warned European leaders on Tuesday that heavy regulation on artificial intelligence (AI) could stifle the industry’s potential, arguing that “massive” regulations in Europe might “kill a transformative industry.” Speaking at the AI summit in Paris, Vance expressed opposition to the European Union’s strict regulatory approach, particularly criticizing the Digital Services Act and GDPR privacy rules, which he argued impose legal compliance costs on smaller firms.

Vance emphasized that AI must remain free from ideological bias and rejected the idea of AI being used as a tool for “authoritarian censorship.” In his speech, he argued that while ensuring safety online is important, it should not extend to restricting access to opinions deemed “misinformation” by governments. The U.S. delegation, led by Vance, did not sign the final statement of the summit, which endorsed principles of inclusive, ethical, and safe AI, diverging from the positions of Europe and other countries.

Vance also took the opportunity to address competition from China, warning about partnering with authoritarian regimes, which he said could pose a risk to nations’ information infrastructure. His comments seemed to reference the recent rise of Chinese startup DeepSeek, which challenged U.S. AI leadership with its freely distributed AI model.

While European leaders like French President Macron and European Commission chief Ursula von der Leyen supported trimming regulatory red tape, they stressed that regulation is crucial for ensuring trust in AI. Macron called for “trustworthy AI,” while von der Leyen assured that the EU would reduce bureaucracy and invest more in AI development.

The U.S. and the UK did not explain why they did not sign the final statement, but the decision aligns with their focus on encouraging innovation over regulatory measures. Russell Wald, executive director at the Stanford Institute for Human-Centered Artificial Intelligence, noted that the U.S. policy shift suggests a focus on accelerating innovation rather than safety-focused regulations.

Apple Partners with Alibaba to Introduce AI Features for iPhones in China

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Apple has partnered with Alibaba to launch artificial intelligence features for iPhone users in China, a move aimed at addressing months of uncertainty over Apple’s AI strategy in the region, according to The Information. The collaboration could help Apple regain its competitive edge in the Chinese market, where it has been losing ground to local rivals such as Huawei, which has already incorporated AI tools into its smartphones since last year.

Apple’s stock rose by 1.5% following the news, while Alibaba’s U.S.-listed shares saw a 2.6% gain. Apple had initially chosen Baidu as its AI partner, but the Chinese company’s progress in developing models for Apple Intelligence did not meet Apple’s standards. As a result, Apple considered various other AI models from Tencent, ByteDance, Alibaba, and Deepseek but ultimately chose Alibaba for its ability to leverage vast amounts of user data related to shopping and payment habits, which could enhance model training and enable more personalized services.

The Chinese AI features co-developed by Apple and Alibaba are now under review by China’s cyberspace regulator for approval. This development is crucial as Apple’s iPhone sales declined during the holiday quarter, typically its best-performing period, largely due to the absence of AI features in its latest devices. Apple remains optimistic, forecasting strong sales growth for the current quarter.