DeepSeek, the Chinese equivalent of ChatGPT, is making big waves in the AI world. Since its launch, it has quickly become the top-rated free app on Apple’s App Store, challenging the notion that the US leads the world in AI development.
DeepSeek’s Chinese developers released the latest version of its app on 20th January (the day of US President Trump’s inauguration) rapidly gaining attention from AI experts and the tech industry. Powered by the open-source DeepSeek-V3 model, it was reportedly developed for less than $6 million, a fraction of the billions spent by its US rivals. Recently, OpenAI and other companies pledged to invest $500 billion in US AI infrastructure. President Trump announced this as “the largest AI infrastructure project in history” to maintain technological leadership in the US. However, DeepSeek’s emergence has impacted US tech stocks. On Monday the Nasdaq index dropped 3%, with chip-making giant Nvidia losing almost $600 billion in market value—the biggest one-day loss in US stock market history.
Privacy Issues
While the Chinese media and open-source AI proponents may be celebrating, DeepSeek’s rise necessitates scrutiny regarding its privacy and security risks. Some of these are:
- Data Collected: DeepSeek gathers sensitive personal data through natural conversations.
- Potential for Influence and Manipulation: As an AI chatbot, DeepSeek can shape opinions and conduct influence campaigns.
- Data Storage and Accessibility: Data stored on servers in China is fully accessible to the Chinese government.
- Level of User Engagement: Users may unknowingly reveal personal or confidential information through interactive conversations.
Many of these issues are the same as TikTok which was temporarily banned in the US last week.
Organisations need to closely monitor the AI models employees use; the US Navy recently advised its members to avoid using DeepSeek due to potential security and ethical concerns. It is also important to establish clear policies, procedures, and guidance, especially regarding GDPR compliance.
Yesterday the Irish Data Protection Commission confirmed to TechCrunch that it has sent a note to DeepSeek requesting details concerning how the data of citizens in Ireland is processed by the company. The Italian data protection regulator has sent a similar note to the company and the DeepSeek mobile app no longer appears in both the Google and Apple app stores in Italy.
Meanwhile (and with a straight face) OpenAI has accused DeepSeek of distilling knowledge from its models, breaching terms of use, and infringing on intellectual property. OpenAI, is itself facing numerous AI copyright lawsuits!
2025 has just started and the AI news feed is already buzzing.
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