Italy’s data protection authority, the Garante, has launched an investigation into Chinese AI model DeepSeek over its use of personal data. The regulator is seeking details on the types of data collected, its sources, purposes, legal basis, and whether the information is stored in China. DeepSeek and its affiliates have been given 20 days to respond, marking one of the first regulatory challenges faced by the startup.
The inquiry comes as DeepSeek gains global attention, recently overtaking OpenAI’s ChatGPT as the top app on Apple’s United States App Store. The Chinese firm positions itself as a low-cost competitor to United States AI models, a claim that has drawn scrutiny from governments and markets alike. In the United States, White House officials have expressed concerns over the app’s potential national security implications.
Italy‘s Garante is known for its assertive stance on AI regulation, having briefly banned ChatGPT in 2023 over alleged EU privacy violations. The investigation into DeepSeek underscores the growing global focus on the privacy and security risks posed by emerging AI technologies.
Alibaba launched a new version of its Qwen 2.5 AI model on Wednesday, claiming it outperforms competitors like DeepSeek-V3, GPT-4, and Llama-3.1-405B. The release, timed on the first day of the Lunar New Year when most Chinese workers are on holiday, highlights the growing pressure from DeepSeek’s rapid rise in the AI sector. The Chinese tech giant’s announcement emphasised that Qwen 2.5-Max delivers better performance across various AI benchmarks compared to some of the top models from OpenAI and Meta.
DeepSeek’s recent success, particularly after its January releases of the DeepSeek-V3 and R1 models, has shaken the AI market, including both international competitors and Chinese firms. The company’s low development and usage costs have raised concerns about the sustainability of large AI investments from US tech giants. The competition within China has intensified, with Alibaba’s Qwen 2.5-Max release and ByteDance’s update to its AI model shortly after DeepSeek’s R1 release, signalling a rapid response to the new market dynamics.
DeepSeek’s previous model, V2, had already disrupted the market last year, triggering a price war with Chinese firms slashing prices on AI models. Alibaba and other major tech companies, including Baidu and Tencent, had to follow suit, offering significantly cheaper options. Despite this, DeepSeek’s founder, Liang Wenfeng, has expressed that his company is focused on achieving Artificial General Intelligence (AGI) rather than competing on price, contrasting DeepSeek’s agile, research-driven approach with the more structured and costly operations of larger tech firms.
As the battle for AI supremacy intensifies, the emergence of DeepSeek, with its lean team of researchers, continues to challenge China’s tech giants, who may find themselves under pressure to innovate faster and more efficiently to keep up with the rapidly evolving AI landscape.
The Vatican has urged governments to monitor AI closely, warning of its potential to spread misinformation and destabilise society. A new document, Antica et nova (Ancient and New), written by two Vatican departments and approved by Pope Francis, highlights the ethical concerns surrounding AI, particularly in its ability to fuel political polarisation and social unrest through fake media.
Pope Francis, who has focused on AI ethics in recent years, emphasised its societal risks in messages to global leaders, including at the World Economic Forum in Davos and the G7 summit in Italy. The pope has repeatedly warned against letting algorithms dictate human destiny, calling for AI to be ethically guided to serve humanity.
The document examines AI’s influence across sectors like labour, healthcare, and education, noting the moral responsibility tied to its use. It stresses that careful regulation is essential to prevent the misuse of AI technologies, as they hold both the promise of progress and the potential for harm.
OpenAI has raised concerns about Chinese companies attempting to access US AI technologies to enhance their models. In a statement released on Tuesday, OpenAI highlighted the critical need to protect its intellectual property and the most advanced capabilities in its AI systems. The company emphasised that it has put in place countermeasures to safeguard its innovations and is working closely with the US government to protect the technology from being exploited by competitors and adversaries.
These comments come in response to the White House’s ongoing review of national security risks posed by Chinese AI companies, particularly the rapidly growing startup DeepSeek. The US government has been looking into potential threats as China increasingly seeks to advance its AI capabilities. David Sacks, the White House’s AI and crypto czar, explained that Chinese firms are using an AI technique called “distillation,” which allows them to extract knowledge from leading US AI models, further raising concerns about intellectual property theft.
OpenAI’s statement underscores the challenges and security risks that arise as AI becomes a critical technology with broad applications, from national defence to economic competitiveness. The company’s efforts to protect its proprietary AI models are part of a broader push by the US to ensure that its technological edge is not compromised by foreign competitors who might attempt to bypass intellectual property protections. The situation highlights the increasing geopolitical tension surrounding AI development, especially as China continues to make significant strides in the field.
Liang Wenfeng, the 39-year-old founder of DeepSeek, has rapidly become a central figure in China’s AI ambitions. Previously maintaining a low profile, he gained national attention after being invited to a closed-door symposium with Premier Li Qiang. His company has made waves by developing an open-source AI model that rivals the capabilities of industry leaders while operating at a fraction of the cost.
Unlike many Chinese tech firms that focus on commercial applications, DeepSeek has prioritised fundamental AI research. Liang argues that China must shift from imitation to original innovation to bridge the gap with the United States. His decision to open-source DeepSeek’s models aligns with his belief that collaboration and transparency will accelerate AI development, much like Silicon Valley’s early approach.
Liang’s background in finance and engineering has shaped his strategic vision. After co-founding a successful quantitative hedge fund, he pivoted to AI, founding DeepSeek in 2023. His leadership has attracted top talent from China’s elite universities, drawn by the challenge of developing artificial general intelligence. As DeepSeek gains global recognition, it signals China’s intent to play a leading role in the future of AI.
Chinese startup DeepSeek has claimed to build an advanced AI model at a fraction of the cost and time required by US tech giants, raising questions about the industry’s spending. The company stated it developed its V3 AI model in just two months for under $6 million, using Nvidia’s less-advanced H800 chips. An app powered by this model became the most downloaded app on the US iPhone store on Monday.
Founded in 2023, DeepSeek claims its AI models rival or outperform top competitors despite significantly lower costs, challenging the notion that scaling AI demands massive resources. This comes as US tech firms, part of the “Magnificent Seven,” have collectively added $10 trillion in market value since the AI boom sparked by ChatGPT in late 2022.
Industry analysts, however, remain sceptical of DeepSeek’s claims. Bernstein‘s Stacy Rasgon questioned whether the startup’s advancements could outpace those from established global AI labs, suggesting the company’s narrative might be overstated. The developments have drawn attention as investors scrutinise AI spending ahead of earnings reports from key industry players.
Microsoft’s ambitious push into artificial intelligence is facing growing investor doubts as the company prepares to release its latest earnings report. Despite heavy investment in OpenAI and plans to spend $80 billion on AI infrastructure this fiscal year, its Azure cloud business has shown slowing growth for two consecutive quarters. Analysts now question whether AI-driven demand will be enough to reignite momentum.
The tech giant’s stock has underperformed many of its peers, with further pressure mounting after Chinese startup DeepSeek introduced a cost-effective AI model, sparking concerns about US dominance in the sector. Meanwhile, Microsoft’s AI-powered Copilot assistant has struggled to gain widespread traction beyond pilot programmes, forcing the company to adjust pricing strategies in an attempt to drive adoption.
While Microsoft still handles most of OpenAI’s cloud traffic, competition in AI infrastructure is intensifying. With investor sentiment turning cautious, the upcoming earnings report will be a key test of whether AI investments can translate into sustainable revenue growth.
SoftBank is set to invest $500 million in SkildAI, a fast-growing AI robotics startup, at a valuation of $4 billion. The company, founded just two years ago, specialises in building AI models that can be adapted for different robotic applications. Previous investors include Jeff Bezos, Lightspeed Venture Partners, and Coatue Management, who contributed to a $300 million round last July.
The investment comes amid surging interest in AI-powered robotics, with major backers like Bezos ramping up funding in the sector. Startups such as Physical Intelligence and Figure AI have also secured hundreds of millions in recent months to develop advanced robotic “brains” and humanoid robots.
SkildAI’s latest funding highlights the growing competition in AI-driven automation, with investors betting on smarter, more adaptable robots. As demand for robotics expands across industries, firms like SkildAI are positioning themselves at the forefront of this technological revolution.
Figure AI has announced the creation of the Centre for the Advancement of Humanoid Safety, a new initiative aimed at ensuring humanoid robots can operate safely in workplaces. Led by former Amazon Robotics safety engineer Rob Gruendel, the centre will focus on testing AI-controlled robots for stability, human detection, and navigation to minimise accidents.
The rise of humanoid robots in warehouses and factories has sparked concerns about their potential risks. Unlike traditional industrial robots, which were confined to cages, these machines move freely among workers, raising safety questions. Existing solutions, such as Amazon’s wearable safety vest and Veo Robotics’ vision-based systems, have helped, but regulation remains largely absent.
Figure AI plans to release regular safety reports detailing its progress, testing methods, and solutions for potential hazards. As companies push to integrate humanoid robots into daily operations, and eventually, into homes, the need for clear safety standards is becoming increasingly urgent.
The treasurer of Australia, Jim Chalmers, has urged caution regarding the use of the Chinese AI model DeepSeek, citing potential risks associated with the technology. Speaking at a news conference on Monday, Chalmers emphasised that the government is closely monitoring the situation and continuously receiving advice on its implications.
DeepSeek, a cost-efficient AI model released by China, has raised global concerns, particularly over its ability to challenge the dominance of US AI developers. Its debut caused significant market turbulence, with shares of AI chip leader Nvidia plunging by 17% on Monday before making a partial recovery.
The United States has also voiced concerns, announcing an investigation into the national security implications of DeepSeek. The scrutiny highlights growing geopolitical tensions around the advancement and control of AI technologies.
