Data Protection at Risk: DeepSeek Faces Legal Challenges in Europe
Initial Complaints and Regulatory Actions
Euroconsumers, a coalition of European consumer organizations, has taken the first major step against DeepSeek by filing a complaint with the Italian Data Protection Authority (DPA). This move highlights growing concerns about how DeepSeek manages personal data within the framework of the General Data Protection Regulation (GDPR). According to Euroconsumers, the practices of DeepSeek could potentially put the data of millions of Italians at risk. The Italian DPA has since issued an official request for information, giving DeepSeek 20 days to respond.The complaint underscores the complexities surrounding international data transfers, especially when services like DeepSeek operate from countries with different regulatory environments. While DeepSeek claims to adhere to applicable data protection laws, the specifics of these practices remain under intense scrutiny. The Italian DPA seeks detailed explanations regarding the types of personal data collected, the sources from which it is obtained, and the purposes for which it is used. Additionally, the authority is probing the legal basis for processing this data and the specifics of the servers located in China.Data Transfers and Privacy Policies
DeepSeek’s operations are based in China, where both Hangzhou DeepSeek Artificial Intelligence and Beijing DeepSeek Artificial Intelligence manage its infrastructure. The company’s privacy policy indicates that all collected data is stored in its home country. However, the lack of transparency around these practices has raised red flags among regulators. Euroconsumers, which previously succeeded in challenging Grok over data usage, now questions whether DeepSeek adequately informs users about the processing of their data, particularly through web scraping activities.Moreover, there are concerns about the protection of minors using DeepSeek’s services. Despite stating that the platform is not intended for users under 18, DeepSeek lacks robust mechanisms for age verification. For younger users between 14 and 18, the company suggests reviewing the privacy policy with an adult, but this guidance falls short of comprehensive safeguards. These gaps highlight the need for stricter oversight to ensure compliance with GDPR requirements and protect vulnerable populations.Potential Broader Implications
The actions taken by Euroconsumers and the Italian DPA may signal the beginning of broader investigations into DeepSeek’s practices. At a recent press conference, Thomas Regnier, Spokesperson for Tech Sovereignty at the European Commission, addressed concerns about security, privacy, and censorship. Although Regnier emphasized that it is too early to comment on specific investigations, he affirmed that all AI services offered in Europe must comply with the region’s rules, including the AI Act.Regnier also touched upon the issue of censorship, noting that topics deemed politically sensitive in China could pose challenges for free speech in Europe. While no formal investigation has been initiated, the Commission’s stance underscores the importance of adhering to established frameworks to address potential issues. As more information emerges, the European authorities will likely continue to monitor DeepSeek closely, ensuring that its operations align with the continent’s stringent data protection standards.The rise of DeepSeek, a Chinese AI laboratory, has captured global attention this week. Following the launch of its chatbot app, which quickly climbed to the top of the Apple App Store charts, industry experts and analysts are questioning the future of the AI race and the sustainability of demand for AI chips. This article explores the origins of DeepSeek, its rapid ascent to prominence, and the implications of its success on the international AI landscape.
Founded by High-Flyer Capital Management, a quantitative hedge fund that leverages AI for trading decisions, DeepSeek began as an internal research project in 2023. The lab was established with the goal of developing advanced AI tools independent of its financial operations. From the outset, DeepSeek invested heavily in building its own data center infrastructure for model training, despite facing challenges due to U.S. export restrictions on hardware. This necessitated the use of less powerful Nvidia H800 chips, compared to the more advanced H100 models available to U.S. firms.
DeepSeek's technical team is notably youthful, with aggressive recruitment from top Chinese universities. The company also employs individuals without traditional computer science backgrounds to broaden its AI systems' understanding of diverse topics. This unique approach has contributed to the development of robust AI models like DeepSeek Coder, DeepSeek LLM, and DeepSeek Chat, introduced in November 2023. However, it was the release of the DeepSeek-V2 family of models in spring 2024 that truly put the company on the map.
DeepSeek-V2, a versatile text and image analysis system, outperformed competitors in various benchmarks while being significantly more cost-effective. This forced major players like ByteDance and Alibaba to adjust their pricing strategies. The subsequent launch of DeepSeek-V3 in December 2024 further solidified the company's reputation. Notably, the R1 reasoning model, unveiled in January 2025, demonstrated exceptional performance in key benchmarks, rivaling OpenAI's offerings.
Despite these achievements, DeepSeek's models are subject to regulatory scrutiny in China to ensure they align with core socialist values. This has led to limitations in certain areas of inquiry within its chatbot applications. Moreover, the company's business model remains somewhat enigmatic, with products priced well below market value or offered for free. Nevertheless, developers have embraced DeepSeek's models, creating numerous derivative versions hosted on platforms like Hugging Face.
DeepSeek's disruptive impact on the AI industry has been profound. Its efficiency breakthroughs have enabled it to compete aggressively with established giants, influencing stock prices and prompting responses from leading figures in the field. While the future trajectory of DeepSeek remains uncertain, its innovative approach and rapid growth suggest a significant role in shaping the next era of artificial intelligence.
In a significant move within the rapidly evolving tech landscape, SoftBank is reportedly in discussions to inject $500 million into Skild AI, a cutting-edge software firm specializing in foundational models for robotics. This potential investment values the company at an impressive $4 billion, reflecting growing investor confidence in AI-driven automation solutions. Founded just two years ago, Skild AI has already garnered attention with its previous funding round of $300 million last July, achieving a valuation of $1.5 billion. The startup's innovative AI model promises versatility across various robotic applications, marking a pivotal moment in the convergence of artificial intelligence and robotics.
A Breakthrough in Robotics: SoftBank's Strategic Move
In the heart of technological innovation, a remarkable development is unfolding as SoftBank contemplates a substantial financial commitment to Skild AI. Established in recent years, this pioneering company has made waves with its groundbreaking AI model designed to enhance robotic capabilities. According to sources close to the matter, SoftBank's proposed $500 million investment would elevate Skild AI's market value to approximately $4 billion. This follows a successful fundraising campaign in July of the previous year, where the company secured $300 million from prominent investors such as Jeff Bezos, Lightspeed Venture Partners, and Coatue Management, reaching a valuation of $1.5 billion.
The founders of Skild AI, Deepak Pathak and Abhinav Gupta, have emphasized the adaptability of their AI model, which can be tailored to suit diverse robotic platforms. This flexibility positions the company as a leader in developing generalized models that can be customized for specific industries and applications. The intersection of AI and robotics has attracted considerable attention from investors, with notable figures like Jeff Bezos increasingly channeling resources into this promising field. For instance, Physical Intelligence, another startup focused on creating advanced robotic "brains," recently raised $400 million at a $2 billion pre-money valuation. Similarly, Figure AI, which is working on humanoid robots, secured $675 million in February, valuing the company at $2.6 billion.
This trend underscores the growing belief that AI-powered robotics will play a transformative role in shaping the future of industries ranging from manufacturing to healthcare. As these technologies continue to advance, they promise not only operational efficiencies but also new possibilities for human-robot collaboration.
From a journalistic perspective, the increasing interest in AI-enhanced robotics signals a shift towards more sophisticated automation solutions. The influx of capital into startups like Skild AI reflects broader economic trends and investor optimism about the long-term potential of these innovations. As we witness the rapid evolution of this sector, it becomes evident that AI and robotics are poised to redefine traditional business models and open up exciting avenues for technological advancement.