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Roomba Maker iRobot Raises Concerns Over Its Future as Business Struggles

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iRobot, the maker of the popular Roomba vacuum cleaner, raised alarms on Wednesday about its ability to continue as a going concern, citing macroeconomic and tariff-related uncertainties. The company’s announcement led to a sharp decline in its stock price, which dropped by more than 30% during afternoon trading. This marks a continued downturn from the company’s pandemic-era highs.

In a statement, iRobot highlighted that “there is substantial doubt about [its] ability to continue as a going concern.” The company, which was valued at $3.56 billion in 2021 due to a surge in demand during the pandemic, is now worth under $200 million.

For the fourth quarter ending December 28, 2024, iRobot reported a net loss of $77.1 million, widening from $63.6 million in the same period the previous year. Revenue also took a hit, declining by 44% in the fourth quarter. Furthermore, the company’s cash reserves fell to $134.3 million in 2024, down from $185.1 million in 2023, while its debt stood at $200.6 million.

iRobot has struggled to compete with Chinese rivals, such as Ecovacs Robotics, which have gained market share by offering more advanced features at lower prices. Despite these challenges, iRobot is exploring strategic options, including a possible sale or debt refinancing, just a day after unveiling eight new Roomba models in what it called its largest product rollout.

In August 2022, iRobot had agreed to a $61-per-share acquisition by Amazon, which analysts believed could provide a lifeline to the struggling company and bolster Amazon’s smart home division. However, the deal faced significant antitrust objections and concerns over privacy related to the spatial data collected by Roomba devices, ultimately leading to the merger’s collapse in January last year.

After the deal fell through, iRobot’s founder, Colin Angle, stepped down as CEO, suggesting the company needed a new leader with expertise in turnarounds. In May 2023, Gary Cohen was appointed CEO to lead the company’s recovery efforts.

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.

Europe’s Privacy Watchdogs to Discuss DeepSeek Amid Data Privacy Concerns

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European Union data protection authorities are set to discuss concerns surrounding the Chinese artificial intelligence startup DeepSeek during their monthly meeting on Tuesday, according to the meeting agenda. The discussions arise amid growing scrutiny of how DeepSeek handles personal data, especially regarding European users.

DeepSeek made waves globally last month by showcasing its ability to compete with major U.S. tech firms in human-like reasoning technology, while offering services at a significantly lower cost. However, concerns have been raised by several European privacy regulators about whether the company is using personal data from European citizens to train its AI models and if such data could be transferred to China.

The European Data Protection Board (EDPB), based in Brussels, has scheduled a session to address DeepSeek’s activities. During the meeting, national data protection authorities will share information on the actions they’ve taken in response to DeepSeek’s operations. Marie-Laure Denis, president of the French privacy watchdog CNIL, emphasized that the goal of the meeting is to harmonize responses and share insights on how to address privacy risks posed by the company.

The CNIL confirmed that it had reached out to DeepSeek for clarification on how the company’s AI system operates and whether there are any potential privacy risks for users. Ireland’s data protection authority has also sought further information from the Chinese startup. Meanwhile, Italy’s data watchdog has taken more drastic action, ordering DeepSeek to block its chatbot in the country due to non-compliance with privacy concerns over its policy.

Europe has been known for its strong stance on data privacy, with its General Data Protection Regulation (GDPR) considered one of the strictest data protection laws in the world. The scrutiny of DeepSeek highlights the region’s commitment to safeguarding user privacy amid the rapid growth of AI technologies.