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France’s Privacy Watchdog To Investigate Chinese AI Startup DeepSeek On AI Privacy Risks And Data Protection

France’s data protection authority, CNIL, is investigating Chinese AI startup DeepSeek over privacy risks, following growing scrutiny from European regulators.

France’s data protection authority, CNIL, has announced plans to investigate DeepSeek, a Chinese artificial intelligence (AI) startup, to assess how its AI system functions and the potential privacy risks it may pose to users.

DeepSeek gained global attention last month after revealing that its DeepSeek-V3 model was trained using less than $6 million worth of computing power with Nvidia H800 chips—a significantly lower cost than many competing AI models.

“The CNIL’s AI department is currently analysing this tool,” a spokesperson for the watchdog stated. “To better understand how this AI system works and the risks in terms of data protection, CNIL will question the company that offers the DeepSeek chatbot.”

CNIL is one of Europe’s most active privacy regulators, known for imposing fines on tech giants such as Google and Meta. DeepSeek has also drawn attention from other European regulatory bodies, including Italy’s data protection authority, which recently sought details about the company’s use of personal data. Similarly, Ireland’s Data Protection Commission has inquired about how DeepSeek processes data related to Irish users.

The European Union (EU) enforces some of the world’s strictest privacy regulations under the General Data Protection Regulation (GDPR), which allows authorities to fine companies up to 4% of their global revenue for non-compliance. Additionally, the EU’s new AI Act, introduced last year, mandates transparency requirements for high-risk AI systems, with penalties ranging from 7.5 million euros (1.5% of turnover) to 35 million euros (7% of global turnover), depending on the severity of the violation.

As privacy and data protection concerns take center stage in AI regulation, DeepSeek now faces intensified scrutiny from European authorities, signaling potential legal and regulatory challenges ahead.

Melissa Enoch

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