Watchdogs in France and South Korea have decided to question the Chinese firm over security and data concerns, while, in a rare move, India has announced plans to host DeepSeek’s AI models on local servers to address privacy issues.
The rise of DeepSeek, a Chinese AI startup, has ignited global debates surrounding data security, ethical AI usage, and geopolitical tensions, prompting varied responses from governments and institutions worldwide.
While Italy and the US Navy have imposed bans, and watchdogs in France and South Korea have decided to question the Chinese firm over security and data concerns, in a rare move, India has announced plans to host DeepSeek’s AI models on local servers to address privacy issues.
Italy’s data protection authority, also known as Garante, launched an investigation into DeepSeek’s AI chatbot on Thursday, blocking it from processing data of Italian users.
Garante said it had decided to act after receiving “completely insufficient” answers to its questions about the firm’s use of personal data.
In a statement, it said it had ordered “urgently and with immediate effect the restriction of the processing of data of Italian users by Hangzhou DeepSeek Artificial Intelligence and Beijing DeepSeek Artificial Intelligence, the Chinese companies that provide the DeepSeek chatbot service.”
At the same time, the authority had opened an investigation, it said.
“The restriction measure, designed to protect the data of Italian users, follows the communication from the companies received today, the contents of which were deemed completely insufficient,” it said.
On Tuesday, the agency announced it had raised questions with DeepSeek about how personal data was collected, from which sources and to what end, and where it was stored.
“Contrary to what was observed by the authority, the companies declared they do not operate in Italy and that European legislation does not apply to them,” the statement on Thursday said.
DeepSeek, based in Hangzhou — sometimes referred to as “China’s Silicon Valley” — caused a stir on Wall Street this week with its powerful new chatbot, developed at a fraction of the cost of its competitors.
In December, Italy fined OpenAI 15 million euros ($15.6 million) over the use of personal data by its popular ChatGPT chatbot, but the US tech firm said it would appeal.
United States: Navy bans DeepSeek over ‘security and ethical concerns’
Across the Atlantic, the US Navy has issued a directive banning DeepSeek’s AI from being used in any capacity, citing “potential security and ethical concerns.”
The Navy’s Chief Information Officer highlighted the risks posed by the AI’s Chinese origins, a measure aligning with broader US efforts to limit Chinese technological influence in critical sectors like AI.
DeepSeek’s rapid success in competing with US models such as OpenAI’s ChatGPT has raised alarms in Washington. The startup’s cost-efficient approach, using older H800 chips and a budget under $6 million, contrasts sharply with the billion-dollar investments by American tech firms, notably OpenAI, which reportedly spent over $100 million on its advanced ChatGPT model.
DeepSeek’s rise has caused market turbulence, with shares of AI chipmakers Nvidia and Broadcom dropping 17 percent, wiping $800 billion off their market value.
US President Donald Trump also stated that DeepSeek has been “a wake-up call” for Silicon Valley, urging American firms to focus on competition.
The Trump administration has also announced a joint venture, Stargate, between OpenAI, Oracle, and SoftBank, with plans to invest billions in AI infrastructure in the US.
France: Privacy watchdog to quiz DeepSeek
Italy’s actions may signal a broader European response. France’s data protection authority, CNIL, has indicated its intent to question DeepSeek about its AI systems.
“The CNIL’s AI department is currently analysing this tool,” said a spokesperson for the French watchdog. “To better understand how this AI system works and the risks in terms of data protection, the CNIL will question the company offering the DeepSeek chatbot.”
This scrutiny could lead to stricter regulations across the European Union, as the bloc grapples with protecting citizens’ data from foreign tech companies.
South Korea: Data authority to question DeepSeek
Seoul’s data protection authority, the Personal Information Protection Commission, has announced plans to question DeepSeek regarding its handling of user data.
The announcement came amid local market turmoil, as DeepSeek’s rapid rise in the AI race has affected South Korean chipmakers Samsung and SK Hynix, causing their stocks to fall.
“We intend to submit our request in writing as early as Friday to obtain information about how DeepSeek handles personal data,” an official from the South Korean commission said, although no further details were provided.
Japan: PM calls for legislation to ‘minimise dangers, risks’ of AI
Japanese Prime Minister Shigeru Ishiba has called for legislation to address the risks posed by AI while promoting its benefits. Ishiba emphasised the need to balance AI-driven national productivity with safeguarding public interests.
“We need to create a basic plan on how we can promote research and development as well as the use of AI in a safe and secure way,” he said. “Our pressing challenge is to submit legislation that will maximise the convenience of AI while minimising the dangers and risks associated with its use.”
The Japanese government has expressed caution over DeepSeek’s rapid rise, though it has refrained from imposing outright restrictions.
India: Plans to host DeepSeek models on local servers
India’s IT Minister Ashwini Vaishnaw on Thursday announced that the country would host DeepSeek’s large language models on domestic servers to address data privacy concerns.
This move is significant, given India’s strict data localisation policies and its generally cautious approach towards Chinese technology.
“Data privacy issues regarding DeepSeek can be addressed by hosting open-source models on Indian servers,” Vaishnaw said at an industry conference.
DeepSeek’s models will likely be hosted on India’s new AI Compute Facility. This decision reflects India’s strategic approach, balancing technological collaboration with caution.
Vaishnaw further praised DeepSeek’s achievement, stating, “You have seen what DeepSeek has done — $5.5 million and a very, very powerful model.”
While India has banned over 300 Chinese apps since 2020, it continues to focus on fostering indigenous AI innovation while hosting foreign models.
The country is also investing in hyperscale infrastructure, collaborating with global chip designers, and developing a regulatory body for AI safety.
DeepSeek’s response and future
Despite facing increasing scrutiny, DeepSeek remains defiant, asserting that its AI model adheres to global standards. The company’s rapid ascent has already caused significant market volatility. Industry leaders warn that the AI arms race between the US and China is intensifying.
The Chinese AI startup’s meteoric rise has forced governments, corporations, and regulators to confront the dual challenges of advancing AI innovation while mitigating associated risks.
The divergent global responses highlight the geopolitical dimensions of the AI race, where national security concerns and economic interests often take precedence over technological benefits.
As more countries weigh in, the world will closely observe whether DeepSeek’s journey marks a breakthrough in democratising AI or a cautionary tale in the escalating battle for AI supremacy.
