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Dutch Privacy Watchdog to Investigate China’s DeepSeek AI Over Data Concerns

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The Netherlands’ privacy watchdog, the Autoriteit Persoonsgegevens (AP), announced on Friday that it will launch an investigation into the data collection practices of Chinese artificial intelligence company DeepSeek. The AP expressed serious concerns over DeepSeek’s privacy policies, particularly regarding how it handles personal information.

Aleid Wolfsen, Chairman of the AP, warned Dutch users to exercise caution when using DeepSeek’s software, citing the potential risks to privacy. The agency also emphasized that personal data from European citizens can only be stored outside of Europe under strict conditions, which DeepSeek must meet.

This move comes just days after Italy blocked DeepSeek’s app over similar privacy concerns, and both Ireland and France have sought information on the company’s data processing practices. The AP revealed that it is working closely with other European Union regulators to exchange information and coordinate future actions.

 

Taiwan Bans Government Use of DeepSeek AI Over Security Concerns

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Taiwan’s Ministry of Digital Affairs announced on Friday that government departments are prohibited from using DeepSeek, a Chinese artificial intelligence (AI) service, citing national security risks. The ministry warned that DeepSeek’s operations involve cross-border data transmission, raising concerns about potential information leaks.

Given Beijing’s sovereignty claims over Taiwan and ongoing political and military tensions, Taiwanese authorities remain cautious about Chinese technology. The digital ministry emphasized that it will continue monitoring technological developments and adjust cybersecurity policies as necessary to safeguard national security.

This development follows similar concerns raised internationally. South Korea’s information privacy watchdog has stated plans to question DeepSeek regarding its data handling practices. Meanwhile, regulatory authorities in France, Italy, and Ireland are also examining the company’s use of personal information.

DeepSeek’s rapid rise has sparked global scrutiny. By Monday, its free AI assistant had surpassed OpenAI’s ChatGPT in downloads from Apple’s App Store. The surge in DeepSeek’s popularity coincided with a sharp decline in U.S. tech stocks, leading to a record $593 billion market value loss for Nvidia in a single day.

 

US Investigates Whether DeepSeek Used Restricted AI Chips

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The U.S. Commerce Department is investigating whether DeepSeek, the Chinese AI company behind a disruptive new model, has been using U.S.-made AI chips that are restricted from being shipped to China, according to a source familiar with the situation. DeepSeek’s free assistant, which launched last week, has been widely praised for its cost-effective performance and ability to process less data compared to U.S. models. It quickly became the most downloaded app on Apple’s App Store, raising concerns in the U.S. about its competitive edge in AI and contributing to a significant drop in the stock market, which wiped out around $1 trillion from U.S. tech stocks.

The current restrictions on advanced AI processors, particularly from Nvidia (NVDA.O), are designed to prevent China from accessing the most sophisticated chips that could enhance its AI capabilities. The U.S. has been tracking organized smuggling operations of these chips into China from countries such as Malaysia, Singapore, and the United Arab Emirates.

DeepSeek has reportedly used Nvidia’s H800 chips, which were legally purchased in 2023. However, the legality of DeepSeek’s access to other U.S. chips remains unclear. It is also known to have Nvidia’s H20 chips, which can be legally sold to China. Although there have been discussions within the U.S. government about placing more restrictions on these chips, the Biden administration and new Trump officials are also weighing tighter controls.

In response to these allegations, Nvidia emphasized that it requires its partners to comply with U.S. export laws, noting that many of its clients in Singapore might use the country as an intermediary for products destined for the U.S. and the West. However, the Singapore trade ministry stated that while there was no indication that DeepSeek obtained export-controlled chips from Singapore, it would continue to uphold the rule of law and cooperate with U.S. authorities.

DeepSeek has also been linked to the use of chips that, while not banned, have raised concerns among AI industry experts. Dario Amodei, CEO of Anthropic, expressed doubts over the legality of some of DeepSeek’s chips, suggesting that they could include smuggled or pre-banned processors.

The U.S. has imposed a range of restrictions on AI chip exports to China and is planning to extend these limits to other countries.