South Korea and Ireland’s data protection authorities announced on Friday that they would seek clarification from Chinese AI startup DeepSeek about how it handles users’ personal data.
This move comes as governments around the world start scrutinising the company following the launch of its R1 chatbot earlier this month.
DeepSeek claims that its AI system rivals leading US technology firms at a fraction of the cost, sparking significant market reactions, including a sharp drop in Nvidia’s stock by 17% on Monday.
DeepSeek’s entry into the AI space has raised questions about the handling of personal information, with regulators from several countries, including France, Italy, and Australia, expressing concerns over the potential risks to privacy.
The South Korean Personal Information Protection Commission stated that it would formally request details from DeepSeek regarding its data practices.
“We intend to submit our request in writing as early as Friday to obtain information about how DeepSeek handles personal data,” the Commission stated.
Similarly, Ireland’s Data Protection Commission confirmed it was seeking information on how DeepSeek processes data related to users in Ireland, a key focus given the country’s role as a hub for tech companies in Europe.
Italy has already taken action by blocking the R1 chatbot from processing data from Italian users and launching an investigation into the AI’s training methods, particularly the sources of data used.
France’s CNIL also plans to question DeepSeek on how its chatbot functions and the potential risks to data protection. Meanwhile, Australia’s science minister Ed Husic urged caution, advising users to carefully consider privacy and data management before using the AI service.
In the wake of these regulatory concerns, stocks in South Korea took a hit, particularly for tech giants Samsung and SK hynix, which supply chips used in AI servers.
However, some industry figures have welcomed DeepSeek’s arrival, seeing it as a much-needed shake-up in the AI market. Despite the ongoing investigations, the company’s rapid growth has sparked debates about competition and the future of AI development.
