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Czech Government Bans Use of Chinese AI Startup DeepSeek in Public Administration

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The Czech government has prohibited all use of services from Chinese AI startup DeepSeek within the country’s public administration, citing data security concerns, Prime Minister Petr Fiala announced on Wednesday. The decision aligns with similar restrictions imposed by Germany, Italy, and the Netherlands due to fears about data protection.

Fiala explained that DeepSeek, as a Chinese company, is legally required to cooperate with Chinese authorities, potentially granting Beijing access to data stored on the company’s servers in China. This risk prompted the government to ban DeepSeek’s AI products, applications, websites, and web services from official public use.

DeepSeek and the Chinese embassy in Prague have not yet responded to requests for comment. The startup made headlines earlier this year by claiming to offer a low-cost AI model competing with U.S. firms like OpenAI’s ChatGPT. However, concerns have grown in both the U.S. and Europe over DeepSeek’s handling of personal data.

DeepSeek’s privacy policy indicates that it stores user data, including AI requests and uploaded files, on Chinese servers, intensifying worries about user privacy and data security.

Czech Government Faces No-Confidence Vote Amid Bitcoin Payment Scandal

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The Czech government is set to face a no-confidence vote on Tuesday following allegations of corruption tied to a $45 million bitcoin payment accepted from an ex-convict, opposition parties announced Thursday. Despite the ruling centre-right coalition holding a parliamentary majority, the move could damage its prospects ahead of the October 3-4 general election, where the opposition currently leads.

Justice Minister Pavel Blazek resigned on May 31 after accepting the bitcoin payment on behalf of the state but denied any illegal conduct. Opposition groups, including the ANO party led by former Prime Minister Andrej Babis, have demanded Prime Minister Petr Fiala step down, calling the transaction a clear sign of corruption.

ANO vice-chair Alena Schillerova said on social media that filing the no-confidence motion was their only option. The bitcoin donation, totaling 468 bitcoins, came from a man who served prison time between 2017 and 2021 for crimes including drug trafficking, fraud, and illegal weapons possession.

Critics argue that Blazek may have inadvertently legitimized the ex-convict’s assets instead of involving law enforcement to properly secure them. Current opinion polls show Babis’s ANO party leading significantly over Fiala’s governing coalition.