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Technology
01 February 2025

DeepSeek AI Faces Global Scrutiny Amid Navy Warning

Concerns over data privacy and ethical compliance heighten as multiple nations investigate the Chinese app.

DeepSeek, the Chinese AI application, is making headlines for its rapid rise in the tech world, now eclipsing OpenAI's ChatGPT on app store rankings. The sudden popularity of DeepSeek has come with waves of concern, particularly from the US Navy, which recently issued warnings about the security and ethical ramifications of using this AI model.

On January 31, 2025, the US Navy sent out emails forbidding personnel from downloading or utilizing the DeepSeek AI for work or personal tasks. “We would like to bring to your attention acritical update...' it advised, emphasizing the imperative nature of the warning. It’s noteworthy because this policy aligns with the Department of the Navy's stringent guidelines when it pertains to artificial intelligence use. The rising popularity of DeepSeek raises alarm bells within such institutions, particularly as it is open-source, meaning its use is unrestricted and could be exploited unduly.

The concern isn’t just from the Navy. A coalition of European consumer groups named Euroconsumers has taken action against DeepSeek, collaborating with the Italian Data Protection Authority (DPA) to file complaints surrounding the app’s handling of personal data. They argue this may breach the General Data Protection Regulation (GDPR), triggering scrutiny over how personal information of millions—particularly Italians—is managed, leading the DPA to request information within 20 days. The Italian DPA has stated, "The data of millions of Italians is at risk," creating additional urgency to the case.

The actions by the Italian officials are mirrored by South Korea’s Personal Information Protection Commission (PIPC). An official confirmed just yesterday, January 31, 2025, to pursue inquiries with DeepSeek's operators about its personal data management strategies. Similar investigations have begun to sprout across France, Italy, Ireland, and beyond, demonstrating the urgency with which these jurisdictions are treating potential lapses in data security.

DeepSeek, which reportedly developed its AI capabilities for only $6 million—a mere fraction of what tech titans like OpenAI and Google expended—has become a compelling point of discussion not just for its functionality but also for its economic viability, inciting concerns throughout the tech industry. This has had tangible consequences: stock prices for AI chipmakers like Nvidia and Broadcom have reportedly dropped significantly since the news of DeepSeek’s financial efficiency and market presence made waves.

Critics are connecting the dots and raising questions about whether such low-cost structures could lead to subpar oversight or standards, potentially allowing the leaking and mishandling of significant amounts of user information. With regulatory scrutiny intensifying, stakeholders are watching closely how DeepSeek will respond to the multiple investigations and allegations swirling around its data handling practices.

These developments not only put DeepSeek under the microscope but also spotlight broader concerns linked to the fast-paced evolution of AI technologies and their regulatory frameworks, making clear the necessity for stringent compliance measures. The interplay between innovation and oversight is becoming increasingly complicated, as entities providing tech solutions weigh their practices against potential backlash from consumers and regulators alike.

With the ramifications of these investigations still playing out, the spotlight remains on DeepSeek to safeguard its user data effectively and adhere to international standards. The pressure is mounting, and the world is watching how this tech firm navigates the tumultuous waters of public scrutiny and regulatory compliance.